Canbank VC fund to raise Rs 500 cr by June

Canbank Venture Capital Fund (CVCF), promoted by the state-run Canara Bank, is planning to raise Rs 500 crore by June from public sector financial institutions.

This will be its sixth fund to be invested in small businesses, a top company official said.

"We will be exhausting the fifth fund by August and therefore by May or June we will be raising a new fund of Rs 500 crore," managing director S Thiruvadi told PTI here.

Like its earlier funds, this will also be a sector-agnostic fund and will typically invest Rs 10-25 crore to take minority interest in companies, he said.

When asked about the investors, he said, generally it approaches state-run banks and insurers for commitments and will continue with the same for the new fund as well.

On promoter Canara Bank's contribution, he said it stands at 20 per cent for the present fund, and hinted that it will also be the same for the new fund.

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