Anand Jain-controlled Jai Corporation, an infrastructure company, has raised commitments worth Rs 5,686 crore through its venture capital management company’s two funds.
Urban Infrastructure Venture Capital (UIVCL), the company’s venture capital company, is the Indian Advisor to UIREF, a Mauritius-based offshore fund that invests in Indian real estate.
Urban Infrastructure Real Estate Fund, the offshore fund that was launched in May last year, has raised commitments of $555 million (around Rs 2,400 crore) so far. With an additional commitment of Rs 1,065 crore in May, the second fund - the Urban Infrastructure Opportunities Fund (UIOF) - has raised its corpus fund to Rs 3,286 crore, the company said in its annual report recently.
Both funds invest in special purpose vehicles (SPVs) that are floated for real estate projects in India. Jai Corp plans to grow the SPVs into large real estate development companies by providing funding for multiple projects. The investment focus, according to the report, is on developing large integrated townships and multi-use developments.
The opportunities fund, which was launched in May 2006, raised Rs 2,221 crore worth commitments at the beginning itself. After two years, it raised additional commitments of Rs 1,065 crore and 20 per cent of it has been drawn down for seven years.
The real estate fund, which has a feeder fund in Jersey, has received financial commitments from institutional and non-institutional investors based in Europe, the US and West Asia.
Anand Jain has been closely associated with Reliance Industries for a long time. He attended the Hill Grange High School in Mumbai, where Mukesh Ambani was his classmate. Jain is currently in charge of RIL’s SEZ foray. The fund’s target is in line with the plans of its core investor, Reliance Industries, said sources.
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Jai Corp is a stakeholder in entities developing two SEZs - Mumbai SEZ and Navi Mumbai SEZ - and the Rewas Port in Maharashtra.
It is planning mega play in power generation, transmission and distribution, water supply, gas distribution, engineering, procurement and construction (EPC) and IT and telecom. The company makes cold-rolled coils, galvanised coils and corrugated sheets at its Nanded unit in Maharashtra.
Today, the company’s shares fell by 1.97 per cent to Rs 330.55 in a weak Mumbai market. In the last one month, it has shed 21.18 per cent market value.