IFC to invest $23 mn in Hyderabad-based breeding firm Srinivasa Farms

The company will use the funds as part of its $83-million investment plan to expand and thereby create over 5,000 jobs directly, besides potentially twice as many along with the value chain

International Finance Corporation (IFC) plans to invest $23 million in Srinivasa Farms, a move that will support the Hyderabad-based firm's $83-million investment plans.

IFC's investment will be in the form of straight equity or compulsorily convertible preference shares or compulsorily convertible debentures in the company.

The money will help the company expand its existing layer, broiler and breeding operations by setting up additional farms and hatcheries, expand feed mills and add soy refineries, set up a food park, and set up chicken and egg processing businesses.

The company is primarily into the breeding business and has a presence in soy, feed, layer and broiler breeding and contract farming.

The promoter and promoter family collectively own an 80.04 per cent stake in the company.

IFC said its own account equity would strengthen the financial soundness, creditworthiness and governance of the client, enabling access to a wider pool of financiers in the longer term. The company's expansion will create over 5,000 jobs directly and potentially twice as many along with the value chain.