Canbank VC picks up 25% in Gayatrishakti Paper for Rs 25 cr

Written by PTI | Mumbai | Updated: Apr 24 2014, 01:14am hrs
Canbank Venture Capital Fund, the PE arm of the state-run lender Canara Bank, today picked up 25 per cent equity stake for Rs 25 crore in the Gujarat-based Gayatrishakti Paper and Board.

Canbank VC made the investment from its Emerging India Growth fund and the investment will help Gayatrishakti expand its operations by setting up a new facility at Sarigram near Valsad in Gujarat.

"The main aim of the fund is to help small and medium businesses to expand. We do not invest in greenfield projects," Canbank managing director S Thiruvadi said.

With this investment in Gayatrishakti, Canbank has picked up 25 per cent equity stake in the group.

The Emerging India Growth Fund is the fifth fund under management of Canbank VC. The total size of the fund is Rs 435 crore and out of which Rs 125 crore has been invested, so far.

Total cost of Gayatrishakti's new facility is Rs 167 crore and the company has also taken Rs 110 crore term loan from Bank of India.