IFC to invest 20 per cent in Indian venture capital fund

The International Finance Corporation, the private sector arm of the World Bank, will invest up to 20 per cent of capital committed to the India-dedicated VenturEast Life Fund III.The fund, managed by VenturEast Mauritius Investment Advisors, will invest in expansion capital in small and medium businesses across India. The focus will be on life sciences sectors including healthcare, food and agriculture. The IFC investment is aimed at stimulating economic activity and employment growth outside the larger Indian cities. In 2007, IFC also invested $15m in the $150m VenturEast Proactive Fund, a technology-focused venture capital fund which so far has invested in a variety of sectors including technology for microfinance, infrastructure technology and semiconductors.

Source: Alt Assets

IFC Invests In Lifetree Convergence; To Fund Inorganic Growth

Lifetree Convergence Ltd., a Delhi based telecom software and billing solutions company, has raised growth funding from International Finance Corporation (IFC), the private equity arm of World Bank. Even though the amount is undisclosed, a 2007 project report of IFC showed that the PE entity was invited to invest upto $20 million of a total funding requirement of $60 million.
Avendus Capital was the exclusive financial advisor to Lifetree for the transaction. According to a statement from Avendus, the capital would be used by Lifetree for inorganic initiatives. The transaction was consummated in August 2008.
Interestingly, Lifetree was acquired by Finnish telecom company Tecnomen for a cash and stock consideration of €33.2 million. Lifetree Convergence was founded in 2000 by Atul Chopra and others. It provides convergent billing and customer care, rating, and messaging platforms for the telecom industry.
The operational support systems (OSS) and business support systems (BSS) software space, in which Lifetree is present, is a $29 billion opportunity, and is expected to grow at 8% year on year. Among them, the convergent solutions are expected to grow by 30% a year. Emerging markets are expected to contribute over 50% of the projected growth in this domain, a statement said.

IFC set to pick up 5% stake in Karnataka Bank

The International Finance Corporation (IFC), the private sector funding arm of World Bank, is set to pick up about 4-5% stake in Mangalore-headquartered Karnataka Bank. The bank’s board is meeting on Friday to decide on a preferential allotment to IFC.

A senior Karnataka Bank official confirmed the development but said pricing details and quantum of stake has not been decided as yet.

Karnataka Bank could be the second Indian bank where the 51-year old World Bank arm has an equity stake. IFC holds 4.99% stake in Federal Bank.

Karnataka Bank had raised Rs 120 crore in June by way of a tier-II bond issue. The bank had gone in for a rights issue (at the ratio of one share for every two shares of post-bonus share capital) at Rs 20 per share (Rs 10 premium) in 2004.

As of June 30, some of the leading institutional shareholders in Karnataka Bank include — Oppenheimer Funds (Oppenheimer International Small Company Fund) with a 4.94% stake, Citigroup Global Markets (Mauritius) 4.34%, UTI Mastershare scheme 1.65%, Franklin Templeton Investment Fund 3.09% and Quantum MF with 3.73% stake.

Post preferential issue, the bank’s capital adequacy ratio(CAR) would rise to 13% from the current 12.72% and help it meet the funding needs up to September 2008.

(Source: Economic Times)

IFC to buy stake in Angel Broking

International Finance Corporation (IFC), the private sector funding arm of World Bank, is in talks with Angel Broking group to pick up a minority stake in its holding company.

The group is in advanced discussions with four global investors and IFC is one of them. “We expect to finalise an investor soon,” said Angel Chairman and Managing Director Dinesh Thakkar.

The new investor will be issued fresh equity in Angel Infin Private, a holding company of group. Angel expects to raise Rs 150 crore from the investors to fund its retail expansion, taking its branches from 80 to 260 in smaller cities.

The multilateral agency discloses the investment proposal as part of its efforts to enhance the transparency of its activities. IFC said the proposed investment will help Angel introduce new products to serve its clients more effectively.

“The investment is well aligned to the corporation’s strategy to support organisations in their growth phase. This also meets IFC’s objective to promote financial inclusion in India by ensuring access to a broader range of financial savings products,” the agency said in a statement on its website.

Thakkar said the group intends to rope in international player to bring in global expertise and also support Angel’s plan to grow beyond India. The group has developed expertise in retail format which it would like to roll out in other countries as well.

“The new investor can help us to find partner in other countries including developed markets. The group can provide cost and quality benefit through outsourcing some activities (to India),” Thakkar added. (source: Business Standard)

IFC to take 5.8 pc stake in Lanco subsidiary

International Finance Corp (IFC), the private sector arm of World Bank, will take 5.84 per cent stake in Lanco Infratech's subsidiary - Lanco Amarkantak Power Pvt Ltd - for $8 million (about Rs 32.5 crore).

IFC To Invest In Aloe Environment Fund And Samara Capital

International Finance Corporation(IFC), the multilateral investment arm of the World Bank, has decided to invest in two India focussed private equity funds - Aloe Environment Fund 2 (Aloe 2) and Samara Capital Partners Fund I Ltd (Samara Capital).

IFC has proposed to invest €15 million ($20 million) in Aloe & up to $10 million in Samara.

Contributor: Amit Sharda