Canbank Venture Capital Fund through its ‘Emerging India Growth Fund’ has invested Rs. 10 crore by way of equity for a minority stake in the Jaipur based Shera Energy Private Ltd. (SEPL) a leading manufacturer of Copper and Aluminium Alloyed products having diversified industrial use. The investment is through preferential allotment of equity shares to CVCFL.
SEPL is a leading manufacturer of all grades of Copper, Aluminium, Brass and other alloyed products. The company has the distinction of supplying Copper products having an IACS conductivity of 102 per cent on a consistent basis. The company has recently set up an expansion project through its subsidiary company Shera Metal at Reengus, Rajasthan with an installed capacity of 4635 MTPA entailing a capital outlay of Rs. 28 Cr. The project has already started commercial production and expecting to go full stream by April, 2015. Apart from domestic market, the project also intends to cater to the export markets such as United States, U.K., Middle East etc in a bigger manner. Shera Metal hopes to achieve a turnover of Rs 200 Cr. by FY 2018.
While announcing the news S Thiruvadi, MD-CVCFL said, “Canbank Venture Capital Fund expects good potential in Shera Energy to grow in the years to come and become a market leader in its field. The Company is well managed by technocrat promoters, operating in the field of metal fabrication industry having modern manufacturing facilities with focus on quality and precision. CVCFL anticipates good returns on its investment through dividends and capital appreciation on exit. CVCFL aims to assist unlisted mid-stage/late stage companies in the manufacturing or services sector with good growth potential and require funding.”
Naseem Shiekh, Chairman and Managing Director, SEPL said, “The amount invested by CVCFL will be utilized by the company for meeting its equity requirement in its new project being set up through its subsidiary company Shera Metal Private Ltd (SMPL) and for other general corporate purposes.”