Bhubaneswar: An MoU has been signed between Department of MSME, Govt. of Odisha and GVFL Advisory Services Pvt. Ltd., Ahmedabad in presence of Chief Secretary of Odisha Gokul Chandra Pati. Secretary MSME Panchanna Dash and Director & CEO, GVFL Dr. Harish chandra Pattnaik have signed the agreement for launching venture capital fund in the name of “Odisha MSME Fund” in the state with a corpus of Rs. 100 crores.
Chief Secretary Sri Pati said on this occasion that Odisha MSME Fund will provide marketing and infrastructural developmental support to MSMEs in Odisha. Registration work will complete within stipulated 6 month time.
While, Govt. of Odisha as sponsor of the Fund will invest around Rs. 50 crores in the Fund, balance Rs. 50 crores will be raised from Banks, Insurance Companies, Financial Institutions, Govt. of India etc. Under this platform, a new asset management company will be created to manage venture capital funds in the state. This new Asset Management Company will be named as “Odisha Alternate Asset Management Company” or any other suitable name and it will be a SEBI registered professionally managed company. The sole function of this company will be to manage various VC and PE Funds that will be created in the state from time-to-time. The first such fund that will be created and managed by this company will be “Odisha MSME Fund”.
It will be a closed-ended fund with a life of 6 years or so. The fund will invest in equities and equity linked instruments in all sectors like IT/ ITES, Biotech, Clean Energy, Clean Tech, Healthcare, Education etc. Normal ticket size of investment will be Rs. 5- 10 crores. However, smaller and bigger ticket size investment depending on the need will be considered.
GVFL Ltd., Ahmedabad is a professionally managed Asset Management Company in public sector. It will provide consulting services like formation of various companies, Trust, SEBI registration, preparation of various legal documents, initial functioning of Asset Management Company etc. to Odisha Government through this MoU. Among others ACS, Finance, Sri Upendranath Behera, Addl. Secretary Sri Partha Sarathy Mishra, Sri Fakir Mohan Nayk, Director, EP& M Sri B.K. Das were present in the programme.