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SBI Cap Ventures to float funds for SMEs and affordable housing

SVL, a subsidiary of SBI Capital Markets, targets closure in the second half of the next financial year (2019-20) through the funds.

Abhijit Lele  |  Mumbai 

infra, realty, buildings, real estate
The regulations require a creditor to submit a claim with proof before the last date mentioned in the public announcement

(SVL) will float two funds: One of Rs 4-billion for small and medium enterprises (SMEs) and a Rs 3.5-bn one for affordable housing, the company said on Monday.

SVL, a subsidiary of SBI Capital Markets, targets closure in the second half of the next financial year (2019-20) through the funds. The SME fund will be broad-based, covering both manufacturing and services. The affordable housing fund will focus on Mumbai, Chennai, Kolkata, Delhi; Pune, Ahmedabad, Hyderabad, and Ahmedabad. It will take stakes in Special Purpose Vehicles for a particular project.

"With these two funds, we are looking forward to strengthening our foothold in economically and socially relevant sectors," said Varsha Purandare, managing director at SBI Capital Markets.

While the gap in debt funding to SMEs is increasingly being bridged by companies, there continues to be significant gap in equity funding for the sector. SMEs will account for over 40 per cent of Gross Domestic Product in this country by 2020, estimates the International Corporation,.

SBI is already the largest provider of home loans from the banking sector. The eight cities where the new private equity fund would initially focus on are among the most active realty markets.

First Published: Mon, November 19 2018. 22:54 IST
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