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LIFE, a new private equity fund for SMEs

Ahmedabad, May 17 (KNN) In order to raise a corpus of around Rs 100 crore in the next three months, a private equity fund focused on the SME sector has been launched, which is themed as 'Let India Fly for Ever'.

Former bureaucrat-turned-entrepreneur Sanjay Gupta earlier this week announced the launch of LIFE, reports media.

Gupta said here that market regulator Securities and Exchange Board of India (SEBI) granted its approval last week, under Category-I AIF Fund regulations for raising funds.

The fund intends to raise a corpus of around Rs 100 crore in the next three months under its first scheme called India Aspiration Scheme (IAS) and will be dedicated to the aspirational middle classes, he said.

The size of fund will be Rs 75 crore with a Rs 25 crore greenshoe option. It will invest Rs 5 crore to Rs 20 crore in SMEs with turnover ranging from Rs 20 crore to 200 crore.  However, it will not fund startups but rather focus on the companies on the “verge of profit”.

The fund will approach the State Governments in Gujarat and Rajasthan, SIDBI and other agencies. It will scout for NRIs and HNIs in India and abroad for raising the money that is expected to provide a 15 per cent return on equity. The minimum ticket size for those investing in the fund will be Rs 1 crore, he said.

The tenure of the scheme is eight years with option for extending it for up to two years.