Sidbi VC slots Rs 150 cr for 3 small firms

Sidbi Venture Capital, a wholly-owned subsidiary of Small Industries Development Bank of India (Sidbi), will invest in three companies from its SME Growth Fund.

Sidbi VC Chief Executive Officer Ajay Kumar Kapur declined to disclose the names of the companies as the deals are yet to be finalised, but said the investment is in mid-size companies across sectors, ranging from auto components, renewable energy to capital goods. It will invest between Rs 20 crore and Rs 50 crore in each of these firms, said Kapur.

The auto components company is based in west India, while the other two are in south India and Maharashtra respectively. Kapur said since the investment in Flash Electronic, an auto components company, two years ago has proved to be a good decision, Sidbi VC intends to continue focusing on the sector.

However, the company intends to stay away from the textiles sector for the time being since it has been hit hard by the economic slowdown. Kapur said Sidbi VC, which is planning a new fund (India Opportunity Fund), will focus on clean technology, healthcare, food and pharmaceutical companies.

Of the total corpus of Rs 500 crore of the SME Growth Fund, Rs 350 crore has been invested and a commitment for Rs 429 crore worth of investment has been made. While there were no exits during the last quarter, it exited five companies in 2007-08.