PE to float SPVs in two verticals

Private equity player IndiaCo Ventures Ltd has pla-nned a slew of sector-specific special purpose vehicles to invest in upcoming and promising companies in these sectors.

IndiaCo vice-chairman and managing director Rahul Patwardhan told reporters here last week that the company is in the process of setting up its first such SPV to invest in the telecommunications field.

"The initial corpus of the SPV would be $30 million and we will identify niche companies in areas ranging from towers to value-added services for telecoms," Patwardhan said.

IndiaCo has on its board of directors former chair-man and managing director of BSNL Prithipal Singh, who will drive the telecom investments SPV.

IndiaCo Ventures will hold 51 per cent in the SPV and the rest will come from private investors, Patwardhan explained, adding that the investments made earlier by IndiaCo Group's private equity arm will be brought under the new company. This investment is about $ 3 million, he informed.

Patwardhan said that IndiaCo will create a string of SPVs to facilitate equity investments in a variety of promising sectors including manufacturing, information technology and real estate. The next SPV to be launched would be in the manufacturing sector, the initial corpus for which is estimated at $ 50 million plus, he said.

Patwardhan said IndiaCo will leverage its close ties with overseas high net worth investors to muster capital support for the proposed investments.

"We may also choose the equity capital issue route in the Indian market," he said.