IFCI Venture was set-up in 1975 by your Company with the objective to broaden entrepreneurship base in India by providing risk capital mainly to first generation entrepreneurs under “Risk Capital Scheme”. In 1988, IFCI Venture launched “Technology Finance & Development Scheme”, to provide financial assistance for setting up projects aimed at commercialization of indigenous technologies.
In 1991, IFCI Venture took up management of a Venture Capital Fund named VECAUS-III, floated by SUUTI and IFCI to promote varied projects across industrial sectors of Indian geography. The VECAUS-III fund was closed in the year 2007 and outstanding portfolio companies were transferred to SUUTI. The Fund was officially closed through sale of portfolio in the year 2011-12.
In the year 2008, IFCI Venture undertook management of 3 new PE/VC funds viz., India Automotive Component Manufacturers Private Equity Fund-1-Domestic (IACM-1-D), Green India Venture Fund (GIVF) and India Enterprise Development Fund (IEDF) with an aggregate corpus of 508 crore, where investment have been done in 29 companies. All the three funds focused on investments in mid-sized companies involved in setting up niche business models in respective industry sectors with prospects of scalability. These funds were fully invested by 2011 and are currently under exit mode.
In the year 2014-15, IFCI Venture has initiated setting-up of three funds viz.
- Venture Capital Fund for Scheduled Castes (VCF-SC) – a Government of India initiative to promote entrepreneurship amongst Scheduled Castes entrepreneurs in India. The corpus of the fund is 250 crores with Government of India contribution of 200 crore and IFCI Limited has committed 50 crore towards the corpus.After registration with SEBI and its launch on January 16, 2015, two proposals aggregating to 6.91 crore were sanctioned and 1.001 crore was disbursed till March 31, 2015.
- Green India Venture Fund – II
- Small and Medium Enterprises Advantage Fund
For both the above fund, in-principal approval has been received and IFCI Limited has committed 50 crore in each of the Fund. IFCI Venture is expected to start operations under these two new funds during F.Y. 2015-16.
IFCI Venture is also registered with RBI as an NBFC and provides secured Corporate Loan to profit making mid-market companies in the range of 5-20 crore with security of shares of listed companies and/or mortgage of property. The Company has a well-defined credit policy for sanction of loans.
The Company has recorded Total Income of 78.53 crore and Net Profit of 24.93 crore for the financial year ended March 31, 2015. The Net Worth of the Company stands at 191.98 crore. As on March 31, 2015, IFCI Venture had a book-debt position of 488 crore and bonds & bank borrowings stands at 377 crores.