Lokesh Machines Ltd, a Hyderabad-based small-sized machine tools maker, has raised $2.08 million fund from IFCI VC Funds Ltd.
Founded in 1984, Lokesh Machines is engaged in design, development, production and supply of machine tools, jigs, fixtures and accessories needed for precision engineering. The company has designed special purpose machines for Ashok Leyland, Bajaj Auto, Escorts, TELCO, Mahindra & Mahindra, Kinetic Engineering and Birla Yamaha. It has also tied up with GROB-WERKE GmbH & Co. KG, Germany, for manufacturing of horizontal machining centre.
In 2005, Gujarat Venture Capital Fund, managed by GVFL Ltd, sold its entire 8.5 per cent stake in Lokesh Machines for $0.4 million (Rs 17.5 million) to the promoters of the company in a buyback, according to Vccedge report. The fund invested Rs 21.5 million in the company in 1996.
Recently, another small size public company Shakti Pumps India Ltd announced that it was raising fresh funds through issue of shares and optionally convertible debentures from IFCI Venture Capital Funds.
In January this year, IFCI Venture Capital said that it was picking up 10 per cent stake in Ganesh Polytex, a small-sized public listed firm that recycles consumer PET bottle waste into polyester staple fibre, for about Rs 13.5 crore ($2.9 million).