Summary of Proposed Investment
Project Number
5098
Company Name
INDUSTRIES VENTURE
Date SPI Disclosed
Aug 24, 1995
Country
India
Industry
other
Status
Completed
Sector
Private Equity/Venture Cap Fund - Country
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Jan 24, 1996
Signed : Jan 29, 1996
Invested : Apr 24, 1996
Project Description
SUMMARY OF PROJECT INFORMATION
Project Name India -Indus Venture Fund II (“Indus II”)
Region Asia
Sector Capital Markets
Project No. 005098
Projected Board Date September 18, 1995
Company Name Indus Venture Fund II
Technical Partner and/or Major Shareholders
Indus Venture Management Limited (“IVML”) was founded by Mr. T Thomas, the former Chairman of Hindustan Lever. Mr. Thomas, together with associates, holds 45% of IVML and 9.5% of Indus Venture Fund I (“Indus I”). The other shareholder in IVML (in addition to IFC which holds 10%) is the Arvind Mafatlal Group, a leading Indian business house, which also holds 9.5% of Indus I. The majority of Indus II will be raised from international investors.
Project Cost Including Proposed IFC Investment
US$40-60 million
IFC investment of up of $5 million
Location of Project and Description of Site
IVML is based in Bombay and has an office in Bangalore. It provides advice and guidance to investee companies. Additional regional offices are planned following the launch of Indus II, and it is intended that investments will be made throughout India.
Description of Company and Purpose of Project
Indus II is a US$40-60 million venture capital fund, to be subscribed through British Virgin Islands and Mauritius companies. It will be managed by a Management Company based in Mauritius. Indus II will invest in small- and medium-sized unlisted companies in India. IVML will be Advisor to this Mauritius based Management Company. This is the second fund to be promoted by IVML, a company founded in 1989 to manage Indus I. IFC already holds 14% of Indus I (total size of US$7 million equivalent). IFC has been asked to contribute US$5 million to Indus II, and will also play a role in structuring and securing commitments from other participants.
Environmental Category and Issues
This is an environmental review category Financial Intermediary project. IVML will be required to undertake an environmental review of all eligible investee companies’ operations to ensure compliance with Government of India’s environmental regulations and applicable World Bank guidelines and environmental policies. In addition, IFC will assess IVML’s capability to carry out environmental reviews of each investee company.
Date SPI sent to PIC August 24, 1995
For additional information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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