Green India Venture Funds, managed by IFCI Venture Capital Fund, has invested $6.75 million (Rs 30 crore) in Dehradun-based consumer durable goods company Amber Enterprises for an undisclosed stake. Amber has issued compulsory convertible debentures (CCDs), with buyback rights for the promoters to the extent of 60 per cent of the stake acquired by the fund, at an annualised return of 20 per cent.
The company will utilise the monies to leverage eco-friendly technologies. Vaish Associates acted as the legal advisor to Green India Venture Funds on this transaction.
Promoted by Jasbir Sing in late 1940s, Amber Enterprises manufactures appliances like air conditioners, washing machines and microwaves. Its key clients include companies like LG, Voltas and Indian Railways.
Green India Venture Fund provides finance for early-stage companies operating in India. The fund mostly invests in energy, energy storage, waste management, pollution control projects and manufacturing sectors. The fund size is $77 million and it invests between $0.4 million and $7 million in its portfolio companies.
In the current year, the fund has closed two deals. It has invested an undisclosed amount in Pithampur-based Shakti Pumps India Ltd, acquiring 0.36 million shares for a total consideration of $1.1 million, and 0.7 million optionally convertible debentures on preferential basis. In another significant deal, the fund invested $2.9 million in Kanpur-based Ganesh Polytex Ltd, which recycles PET bottle waste into polyester staple fibre.