News: IDBI Capital to invest in private equity funds

(BL 18/09/2006) Mumbai - IDBI Capital plans to invest in the private equity of companies through its internal funds. The stakes will then be offloaded by way of initial public offerings or sold to other equity funds.

Speaking to Business Line, S. Munhot, Managing Director and CEO, IDBI Capital, said, "We have already finalised an investment of Rs 10 crore in Vrajeshwari Textiles, to pick up around 6 per cent stake in the company. Other investments are in the pipeline." Munhot said the company was looking at companies with around 35 per cent returns.

IDBI Capital is also planning to launch Portfolio Management Services for institutional investors in six months with a portfolio size of above Rs 1 crore.

The financial house is planning to expand its reach in retail. "We are in talks with banks to work as partners and also with small and medium sized broking houses to offer its services through their portal, idbipaisabuilder.in," said Munhot. Currently, the portal has around 8,000 clients.

IDBI Capital Market Services Ltd was conferred the `CNBC TV18 Financial Advisor Awards 2006' for the `Best National Financial Advisor-Institutional' in India, on September 13.