According to reports, IFCI Venture Capital Funds through its Green India Venture Fund is investing Rs.13.5 Cr in Kanpur-based Ganesh Polytex Ltd for a 10% stake.
It is investing by subscribing 15 lakh Optionally Convertible Debentures (OCDs) at Rs.90 eachon preferential basis, convertible into equal number of equity Shares at the same price. On conversion, it will own 10% of the expanded equity capital.
Ganesh Polytex is engaged recyling of post consumer PET bottle waste into Regenerated Polyster Staple Fibre (RPSF) which is also called as fibrefill.
It has got two plants loacted at Kanpur (UP) and Rudrapur (Uttarakhand) with a combined capacity of 57,600 TPA and is the largest player in the recycled PSF industry, followed by Reliance Industry which has a capacity of 42,000 TPA. Ganesh Polytex is planning for capacity expansion to 100,000 TPA in stages over the next two year as well as is planning for forward integration into value added downstream products.
Green India Venture Fund is a $70 Mn (Rs.330 Cr) renewable and clean energy venture fund. Recently, the fund has invested Rs.30 Cr in Hyderabad-based Titan Energy Systems Limited by way of equity and compulsory convertible debentures (CCDs) into the company. About 50% of the investment (Rs.15 Cr) has been done through equity for 12% stake and the remaining CCDs will be realised depending upon the performance of the company in 2012.
The fund also has investments in telecom passive infrastructure device firm – Luminous Tele-Infra Ltd, LED chip manufacturing firm – De Core science & Technologies and solar electric rickshaw maker – Innovative Modular Machines.
The fund invests between Rs.2 Cr to Rs.30 Cr in a single company.