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Gujarat Venture Finance raises around $70M under Golden Gujarat Growth Fund-I

Venture capital pioneer Gujarat Venture Finance Ltd (GVFL) announced the final closure of its 'Golden Gujarat Growth Fund-I' here today with a corpus of Rs 426 crore.

"In India, largely, 80 per cent to 90 per cent comes from overseas in any private equity. At Global Gujarat Fund, the entire investment is domestic and a large amount was contributed by domestic investors," Chief Executive Officer and Director of GVFL Harish Pattnaik told reporters here.

"The Golden Gujarat Growth Fund-I was closed on December 17, 2014, with a corpus of Rs 426 crore. Two big investors were Government of Gujarat and Life Insurance Corporation of India which contributed Rs 100 crore each," Pattnaik said.

Others like SIDBI contributed Rs 50 crore, Bank of Baroda contributed Rs 25 crore, IFCI contributed 25 crore and SBI contributed Rs 25 crore, he said.

The Golden Gujarat Growth Fund also include investors like Union Bank of India, Central Bank of India, Dena Bank, Bank of India, Syndicate Bank, SBH, SBM, SBT, NABARAD, GIC, Oriental Insurance, New India Assurance and United India Insurance, Pattnaik said.

"Originally, we wanted to raise Rs 1000 crore -- around Rs 500 crore from domestic investors and Rs 500 crore from overseas investors," he said.

According to Pattnaik, the fund has invested in four entities so far.

GVFL has invested Rs 40 crore in Ratnakar Estate Developers Pvt Ltd to set up a private industrial park near Por industrial estate in Vadodara. 

Another Rs 40 crore investment has been made in Ushdev Power Holding Pvt Ltd to acquire operating wind power assets, while development of a 36 MW wind farm project of an independent wind energy company SITAC RE has been funded with Rs 40 crore investment at Jasdan town of Amreli district, he said.

Around Rs 150 crore has been invested in Hubtown Ltd to renovate bus a station cum commercial complex at four centres including Ahmedabad, Surat, Vadodara and Mehsana, Pattnaik said.

Another Rs 350 crore of investment will be made, while rest of the amount will be kept aside for emergencies and crisis like situations, he said.

Pattnaik also said that the fund will provide more than 20 per cent returns to investors in time.

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