Canbank Venture Capital Fund Ltd (CVCFL), a subsidiary of public sector lender Canara Bank Ltd, has acquired a minority stake in Jaipur-based Shera Energy Pvt Ltd (SEPL) for about Rs 10 crore (approximately $1.6 million), according to a press release.
Shera Energy, which makes metal rods, tubes and wires from copper, aluminium and brass, would use the money to invest in a subsidiary Shera Metal Pvt Ltd (SMPL), which is into manufacturing of alloyed products.
CVCFL is the first external investor in family-owned Shera Energy.
“CVCFL anticipates good returns on its investment through dividends and capital appreciation on exit,” S Thiruvadi, managing director of CVCFL, said.
Shera Energy recently set up an expansion project through its subsidiary Shera Metal. Located at Reengus, Rajasthan, it has an installed capacity of 4635 MTPA entailing a capital outlay of Rs 28 crore.
The project has started commercial production and is expected to begin operations in full swing by next month. Apart from the domestic market, the project intends to cater to the export markets such as the US, the UK and the Middle East.
Shera Metal hopes to achieve a turnover of Rs 200 crore by the financial year ending March 31, 2018.
(Edited by Joby Puthuparampil Johnson)
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