Religare launches ER Capital India Pvt equity fund

Mumbai, May 25 (UNI) Religare, a diversified financial services provider, in a joint venture with Evercore partners, a US-based leading advisory and investment firm has launched a new private equity fund - 'ER Capital India Fund' to raise US Dollar 150 million to help the Tier II and Tier III cities capital market.

The fund will start with a capital commitment of US Dollar 20 million and will target India-based high growth and mid-sized private equity investment opportunities.

Talking to media persons Religare CEO and Managing Director Sunil Sodhwani said, ''The private equity market in India is under served.

At penetration level of 0.1 per cent of GDP for Asia as compared to 0.8 per cent in European Union and 1.1 per cent in US, Religare see tremendous growth opportunity for private equity investment... Our aim is to fulfill the growing need of capital from the mid-sized Indian enterprises and also bring in value-added, credible and stable investors and to be a part of institutionalising high standards of corporate governance.'' Further adding he said, ''though this fund will be raised abroad we have plans to launch similar funds for domestic investors. The proceeds of the funds will go to help the tier II and Tier III cities.'' Religare which is 100 per cent owned by Ranbaxy has launched this fund to specifically focus on sectors like infrastructure, health, financial services, manufacturing and retail. The target investors are from SE Asia, Europe and Gulf region.

'The ER Capital India Fund' will have a tenure of seven years with a provision for one year extension and the commitment period for the investors would be four years.

The fund would be managed by senior management team headed by Sunil Godhwani and Mr Rahul Kher, Head International Equity, Religare and Mr Neeraj Mital and Mr Sangam Pant both senior MDs of Evercore Capital Partners and Evercore Ventures, respectively.

UNI VS MJ VKG1604