The fund, created in association with Ahmedabad based GVFL Advisory Services Pvt Ltd, is aimed at providing seed funding to start-ups and growth capital to existing units needing funds for scaling up operations.
A memorandum of understanding (MoU) between Secretary MSME Panchanna Dash and Director & CEO, GVFL Advisory Services Pvt Ltd, Harish Chandra Pattnaik was signed in presence of Chief Secretary, Gokul Chandra Pati here today.
The pact covers establishment of an Asset Management Company (AMC) and management of the Odisha MSME Fund. The new AMC, to manage VC and PE funds, may be named as "Odisha Alternate Asset Management Company".
The VC fund with corpus of Rs 100 crore will be close ended fund with a life of six years and will invest in equities and equity linked instruments in sectors like IT(information technology)/ ITes(enabled services), biotech, clean energy, clean tech, healthcare, education etc.
While the normal ticket size of investment will be Rs. 5- 10 crore, smaller and bigger investments, depending on the need may also be considered. The state government, as sponsor of the fund, will invest around Rs 50 crore and the balance amount will be raised from banks, insurance companies, financial institutions, Government of India with an estimated return of 15 per cent.
The VC Fund is expected to start function during 2014-15.
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The MoU mandates that GVFL will provide consulting services for formation of various companies, trust, SEBI registration, preparation of various legal documents and initial functioning of AMC.
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