Mukesh Ambani mulls PE venture with Rs1,000 cr investment

 New Delhi: Billionaire industrialist Mukesh Ambani is planning to provide Rs1,000 crore seed capital to kick-start a new venture that would invest in innovative business ideas, including in technology and healthcare segments, reports PTI.
Mr Ambani, who heads the country's most valued corporate entity Reliance Industries (RIL), will probably make an investment of about $250 million in his individual capacity, sources close to the development said. A RIL spokesperson did not offer any comment.
The process has begun for stringing together a team of experts with domain knowledge of various sectors for managing this private equity venture, sources said.
It said some of his close aides at RIL group might also be brought on board.
The top tier of people to be associated with this venture would include those with expertise in biotechnology, healthcare, energy and consultancy businesses, besides private equity and venture capital segments.
The new venture would mostly invest in start-ups working on innovative business ideas in sectors like biotechnology, healthcare, information technology, new and renewable energy as also traditional energy sources, among others.
However, it was unlikely that RIL group itself would get involved in the venture and it was most likely that the investment would be made by Mr Ambani in his individual capacity, sources said.
The sources said the venture would also look at roping in other investors, mostly from overseas.
He would join the likes of NR Narayan Murthy and Azim Premji—founder and chairman of two of the country's biggest IT majors Infosys and Wipro, respectively, who have floated private equity investment ventures at their individual levels.
Besides, a number of large industrial houses, such as Tatas, Aditya Birla group and Anil Ambani group have their own private equity investment arms that invest in various companies as per their respective mandates.
RIL and Mr Ambani himself have often talked about need to invest in areas like business innovation, new technology and research and development.
Earlier in 2007, RIL group firm Reliance Life Sciences had announced a partnership with MPM Capital, a US-based global investment management firm focussed on healthcare business, to invest in Indian life science sector.
Subsequent to the deal, RIL invested nearly Rs80 crore in a MPM BioVentures fund during the last fiscal 2009-10.
The group has also created a Reliance Technology Group (RTG) by consolidating various research and technology functions of its businesses.
It has also set up a Reliance Innovation Council that comprises of eminent scientist RA Mashelkar and Ambani himself, among other global leaders, from fields of science and business.


Bank of India hikes rate by 1%

State-owned Bank of India (BoI) has hiked fixed deposit rates by up to 1% on select maturities in line with other lenders.

Term deposits of 1-2 year maturity will now fetch customers 8.25% compared to 7.5% earlier, an increase of 75 basis points, BoI informed the Bombay Stock Exchange (BSE).

At the same time, interest rate on fixed deposit with 2-3 years maturity has been increased by 1% or 100 basis points to 8.25% against existing 7.25%, it said.

However, rate of interest in other brackets remained unchanged at earlier level.

On Monday, BoI declined 4.02% to Rs461.05 on the BSE, while the benchmark closed 0.07% up at 19,981.31 points.


Ganesh Polytex chalks out Rs125 crore capex plan

Ganesh Polytex Ltd (GPL) has earmarked Rs125 crore for funding its organic growth plans over the next one year.
The plan involves setting up greenfield plastic recycling projects with the capacity to covert 15,000 tonnes per annum (tpa) of waste into partially oriented yarn (POY) and texturised yarn, GPL CFO Gopal Agarwal said.

The project cost of Rs125 crore will be financed through a mix of equity, debt and internal accruals, Agarwal said.
As part of forward integration, the company will also creating capacities for the manufacture of 5,000 tpa of spun yarn out of recycled polyester staple fibre.

The project is proposed to be set up at Bilaspur, in Uttar Pradesh, near GPL’s existing pet bottle processing unit. A plot measuring around 15 acres has been bought for the project, Agarwal said.

Established in 1989, GPL initially had a yarn dyeing and doubling capacity of 391 and 360 tpa, respectively. Since then the company has augmented its yarn dyeing capacity to 2,400 tpa.

On Monday, GPL gained 0.40% to Rs63.45 on the Bombay Stock Exchange, while the benchmark closed 0.07% up at 19,981.31 points.




6 years ago

How are they funding this? I read an article in ET that said they are in the process of closing a PE deal

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