Ventureast putting up to $2.3M more in Polygenta Technologies

Ventureast Life Fund III, a fund managed by Ventureast Fund Advisors India Ltd, is putting in up to Rs 14.25 crore ($2.29 million) more in Polygenta Technologies Ltd through a preferential allotment, as per a stock market disclosure. 

Polygenta is issuing 9.5 million non-convertible redeemable preference shares (NCRPS) to Ventureast at Rs 15 each aggregating to Rs 14.25 crore. This is part of a larger issue in which the promoters are putting in Rs 53.25 crore through NCRPS. 

The issue of NCRPS will not change the equity shareholding pattern because the preference shares are not convertible into equity shares.

The company said it needs funds for augmenting working capital and funding capital expenditure to enhance the performance of its factory in Nashik. 

Polygenta is engaged in manufacturing and selling polyester filament yarn made with recycled polyethylene terephthalate content as a feedstock in India. It sells its products under the brand name PolyGold for various applications in the fields of automotive, home furnishings, fashion, denim and floor coverings.

For Ventureast, this would add to its exposure to the Mumbai-based company. Last year it had invested Rs 11 crore to acquire 1.88 per cent stake in the company.

Ventureast Life Fund III is a $200 million venture capital fund which focuses on healthcare, sustainable agriculture and clean environment technology sectors. It typically seeks to invest between $5 million and $15 million in its portfolio companies. Ventureast has invested in six companies through this fund since 2010.

This would be the first investment by Ventureast this year. Last year, it had invested in Richcore Lifesciences Pvt Ltd.

(Edited by Joby Puthuparampil Johnson)

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