Canbank Venture buys 25% stake in Shera Energy for Rs 10 crore

MUMBAI; Canbank Venture Capital Fund picked up 25% equity stake in Jaipur-based Shera Energy for Rs 10 crore with the hope of exiting the investment with strong returns in two to three years.

Shera Energy, which makes metal rods, tubes and wires from copper, aluminium and brass, is considering an initial public offering in 2017.

The company, at present, clocks in a revenue of about Rs 300 crore with a profit of Rs 4 crore. It expects to double revenues by 2018, driven by expansion which is partly funded by Canbank Venture Capital.

The company is currently burdened by a debt of about Rs 100 crore, which cuts into its profitability. However, revenue growth is expected to pick up going forward, according to its credit rating agency Crisil, helping it improve its financial profile.