Fund Features

Particulars Details
Size of financial assistance Rs. 20 lakhs to Rs. 15 Crore
[Maximum aggregate assistance not more than two times the current net worth of the Company].
Tenure of financial assistance Up to 6 years including moratorium period.
Instruments for investment
  • Equity/ Optionally Convertible Preference Shares / Compulsorily  Convertible Preference Shares;
  • Compulsorily Convertible Debentures, Optionally Convertible Debentures, Non-Convertible Debentures, etc;
Funding Pattern Investment under the fund will be categorized as follows:
  • Financial assistance upto Rs 5 Crore - Investment under this category shall be funded maximum upto 75% of the project cost and the balance 25% of the project cost will be funded by the promoters;
  • Financial assistance above Rs. 5 Crore –
  • Investment under this category shall be funded maximum upto 50% of the project cost. At least 25% of the project cost shall be funded by promoters and balance 25% of the project cost can be funded either by promoters or by the bank or any other Financial Institutions as the case may be.
  • For financial assistance above Rs. 5 crore, IFCI Venture will conduct technical and feasibility study from an independent source.
Moratorium period for redemption of principal On case to case basis but not more than 36 months from the date of investment in the Company. However, interest/ coupon payment shall commence from date of investment in the Company at a regular interval as determined by the Investment Committee of the fund.
Returns/ Coupons/ Interest for financial assistance
  • Equity instruments -15% p.a.
  • Debt/Convertible Instruments- 8% p.a. (For women*/disabled** entrepreneurs -7.75% p.a.)
*For considering a company owned by a SC women entrepreneur, the SC women entrepreneur should hold atleast 51% of the shareholding in the company and should be the Managing Director of the Company;
** In the case of disabled entrepreneurs, guidelines issued by the Department of Empowerment of persons with Disabilities for qualifying as disabled would be followed.
Moratorium period for redemption of principal On case to case basis but not more than 36 months from the date of investment in the Company. However, interest/ coupon payment shall commence from date of investment in the Company at a regular interval as determined by the Investment Committee of the fund.
Security
  • The assets of the project being funded/ assisted under the scheme shall be charged for security. The project assets will include land, building, plant & machinery and rights on licenses/ patents.
  • Pari-pasu charge on assets with the Banks/FIs in case of the companies applying for assistance of more than Rs. 5 Crore.
  • 2nd charge of the assets created out of the investment where the 1st charge in held by the Bank/FIs.
  • In addition to the charge on assets, post-dated cheques and promissory notes shall be taken.
  • Personal guarantees of the promoters along with buyback agreement shall be entered.
  • Pledge of Shares held by promoters and forming atleast 26% stake and upto 51% of the Issued and Paid up capital shall be taken. However, the percentage of pledged shares would be decided on case to case basis.
  • In case no mortgage is available, the borrower may arrange collateral and corporate guarantees from family / friends / associates / group companies.

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