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Enam Infra Fund gets nod to invest Rs 3,700 cr in India

Mauritius-based venture capital fund, Enam India Infrastructure, will invest Rs 3,700 crore in India’s infrastructure and energy projects through a dedicated core sector fund.

Promoted by Mumbai-based Enam Securities, the Mauritius outfit will bring in foreign direct investment worth Rs 3,450 crore through the fund.

The cabinet committee on economic affairs cleared the investment proposal on Thursday.

Enam India Infrastructure is a venture capital fund registered with Sebi in September last year and backed by promoters of Enam Securities.

The private equity fund will essentially invest 80 per cent in infrastructure like roads, power, ports and airports. The rest 20 per cent will be invested in allied units connected with infrastructure sector.

“The funds received are expected to be invested in equity and equity-linked investments in infrastructure and energy sectors,” an official release said.

CCEA also gave a green signal to Power Finance Corporation’s (PFC) proposal for a follow-on public offer. The government-owned company can now issue 17.21 crore equity shares of Rs 10 each constituting fresh issue of 15 per cent of pre-issue existing paid up capital. In addition, it can also issue 5.73 crore equity shares of Rs 10 each.

In addition, the company will also issue five crore equity shares at face value of Rs 10 each, comprising divestment of 5 per cent government holding in the company that stands at 89.78 per cent now. The government in 2007 had divested its 10 per cent stake in PFC. With the FPO, its stake would stand lower than 85 per cent.

The FPO’s actual realisation would be known only after the ministerial panel headed by finance minister fixes the price. The follow-on offer includes a portion not exceeding 0.12 per cent of the issue size for PFC employees. Retail investors and eligible PFC employees will be eligible for a 5 per cent discount on the FPO issue price.

Source: My Digital FC

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