GVFL marks 4 cos for early stage pump-in

NEW DELHI: Ahmedabad-based venture capital firm GVFL on Wednesday announced its plans to invest in four companies at seed and early stage-level in information technology and biotech sector this year. The investments would be made from the company���s sectoral funds, the Rs 20-crore Gujarat IT Fund and Rs 50 crore Gujarat Biotechnology Venture Fund.

For making these investments, GVFL is evaluating several proposals including those from the IIM-Ahmedabad incubator and NirmaLabs. The deals are expected to materialise soon. The fund is also looking to divest its stake in some of its portfolio companies. ���Companies like eInfochips, Icenet and Anupam Globalsoft are slated for divestment in 2007 as they have matured and are capable of giving optimum returns,��� said Vishnu Varshney, CEO GVFL.

In 2006, GVFL had divested from 6 of its investee companies including Saraf foods, Scicom Technologies, Parsec Technologies, Broadcast Worldwide, Technology Media Group and Apex Electricals. These exits were made through strategic buyouts by promoters or other investors.

Private equity player Baring Partners picked up part of GVFL���s stake in Gurgaon-based Parsec Loans for nearly Rs 15-16 crore. In Noida-based Scicom Technologies, the promoters and employees of the company bought out GVFL���s stake. GVFL has also profitably closed its Rs 24 crore first fund-GVCF 1990, the company said in a press release.

Of its Rs 50 crore biotech fund (set up with help from Gujarat government), GVFL has invested in Celestial Biologicals, an Intas pharma subsidiary. It has invested two crore in the company, a maker of protein drugs by plasma fractionation. GVFL, in the last 16 years, has raised five venture capital funds with a combined capital of Rs 140 crore and has made investments in 58 companies.