rajasthan venture capital fund managed by rajasthan asset management company private limited...
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Rajasthan Venture Capital FundManaged by
Rajasthan Asset Management Company Private Limited
Emerging opportunities in Technical Textiles -Rajasthan Perspective13th September, 2010
Objective
Supporting growth in Technology and the emerging high growth sectors
Provide healthy returns to the Contributors/ Investors by realizing substantial long-term capital appreciation
Focus on SMEs through early and growth stages of funding
RVCF I
RAMC setup in the year 2002-03 jointly by RIICO, SIDBI, Bank of Rajasthan and few IT companies, as an autonomous private sector company.
RAMC acts as Investment Manager to Rajasthan Venture Capital Fund (RVCF) with twin objective of supporting growth of technology and innovations and to provide healthy returns to its contributors.
Investment Pan India : focus -Rajasthan and NCR.
RAMC has two Funds under its management ie RVCF-I and RVCF-II
RVCF-I commenced operations in the year 2003 with a pilot corpus of INR 16 Cr. contributed equally by RIICO and SIDBI.
The first fund invested INR 16 Cr in 10 projects: 5 in IT sector, 2 each in Retail and Tourism sectors and one in bio-technology sector - located in Rajasthan and National Capital Region (NCR).
RVCF II
RVCF-II started operations in 2008-09 on receipt of the permission from Securities Exchange Board of India (SEBI).
Committed corpus of INR 115 Cr. contributed by 11 contributors ( FIs, Insurance companies and Technology Dev. Board). Raising additional corpus of INR 35 Cr under “Green Shoe” option.
Preferred sectors: Information Technology, Biotech, Auto, Clean Tech, Agro & Food processing, and Other High Growth newTechnology based Projects.
Second Fund (RVCF -II) –Recently committed INR 73.45 Cr in 8 projects : -Two each in IT and Retail . One each in Agro, Health, Auto and Media.
RVCF is one of the three regional funds, out of 12 such funds supported by SIDBI, to have successfully raised second fund, based on its successful track record.
Performance matrix of Investee companies – RVCF I
Name of Company Product/Services
Investment Committed
Natural Technologies Pvt. Ltd.
Banking Software Exited with an IRR of 26.26%
Cyber Futuristics (I) Pvt. Ltd BPO/KPO Rs. 104 Lac Geographical advantage, Growth
potential, Management capabilities
Escotoonz Entertainment Pvt. Ltd
Animation TV serials and films Exited with an IRR of 6%
Liqvid eLearning Services Private Ltd E-Learning Rs. 300 Lac Negotiation for Exit at IRR of 16.5% is
an advanced stage
The Home Store India Limited Home Furnishing
Retail Exited with an IRR of 41%
Hiteshi Herbotech Pvt. Ltd. Bio Agri Rs. 60 Lac Fast growing demand, Raw material
availability, Experienced management
Harbinger Techaxes Pvt. Ltd.
Business Analytics Software
Rs. 200 Lac Exit made at IRR of 8.5%
Vasari IndiaPvt. Ltd Ethnic Wear Retail outlets Rs. 240 Lac Proven track record, Well established
Market
E-Factor Adventure Tourism Pvt Ltd
Expansion of Hot air Ballooning in North India
Rs. 200 LacFirst company to have permission from GoI to do hot air ballooning on commercial basis
Geeta Star Hotels and Resorts Pvt. Ltd Specialty Hotels Rs. 180 Lac Eco Friendly Hotel
V A S A R I
Recent Investments of RVCF II
Imaging Super Consultants Pvt. Ltd.
SEBACIC INDIA LIMITED
S. No.
Name Investment Committed INR in Crore
Sector Product/Service
1 Imaging Super Consultants Pvt. Jaipur
5.95 Health State of Art Linear Accelerator Machine in PPP with Hospital, Jaipur
2 AAA IT Solutions Pvt. Ltd (Job Junction),Ahmadabad
3.00 ITeS Vocational Training Institute and First Employment Exchange for Blue Collar Jobs in India
3 Rajasthan Patrika Pvt Ltd. Jaipur
15.0 Media Digitization and expansion of print media
4 Sebacic India Ltd, Vadodara
5.0 Agritech Manufacturing plant of Sebacic Acid using Castor Oil
5 The Loot India Pvt Ltd, Mumbai
15 Retail Discount Retail Store
6 Technico Industries Ltd, Baval
15 Auto Auto ancillary –OEM Maruti, Toyota, Nissan
7 NexTenders India Pvt. Ltd, Mumbai
8.5 IT/ITES E-procurement
8 XSIS IS Promotions Pvt. Ltd
6.0 Retail Sports Equipments
9 Total 73.45
Investment Strategy
A) Investment • Preferred sectors: Information Technology, Biotech, Auto, Clean Tech,
Agro & Food processing, and Other High Growth newTechnology based Projects.
• Upto 40% equity
B) Geographical Reach • Pan India investments with focus on Rajasthan and NCR
C) Investment Range• Investment range: INR 2 Cr to INR 15 Cr per VCU
D) Investment Horizon
• 3 to 5 years with expected IRR of over 20%
E) Investment Instruments• Equity shares• Optionally convertible cumulative preferences shares (OCCPS) • Optionally convertible debentures (OCD), etc.• or as permitted by SEBI
Exit Options
• Strategic Sales-Mergers/acquisitions or Trade Sale
• Initial Public Offerings (IPOs) to the public.
• Buy back by company/promoters.
• Executive Summary - Brief Details of the Project and Extent of Financial Support Required. • Description of Business and its industry
• Details of idea/plan • Scalability• Entry barriers• Creation of value
• Market Research and analysis
• Design and development plans
• Operational plan
• Management team / organization
• Critical risk and problems
• Financial plans
• Competitive Strengths As Perceived By the Promoters and the Management. • SWOT Analysis • Proposed Exit
WHAT SHOULD A GOOD BUSINESS PLAN INCLUDE
The Do’s & Don’ts of Business Plans• The business plan is best written by the management itself,• Know what you don’t know and make sure you spend the
time to figure it out,• Avoid exaggeration of the facts and support your claims,• Address key concerns of the audience,• Tailor make the plan to suit the profile of the audience,• Discuss all identified risks, don’t be selective,• Develop the financials and executive summary sections last,• Get an outsider’s perspective, and• Avoid jargon and “fluffy” adjectives such as “best”,
“superior”, etc. without supporting justification.
