Canbank VC fund invests Rs 25cr in Gayatrishakti Paper & Boards

Gayatrishakti Paper & Boards - Mumbai based paper manufacturing company - on Tuesday said that Canbank Venture Capital Fund has invested Rs 25 crore for a minority stake in company's new project to be commissioned Gujarat.

Gayatrishakti is establishing a new integrated plant at Sarigam in Gujarat with a capacity of 90,000 mta. The new facility is expected to be commence in 2015.

With a turnover of Rs 300 crore, the company said that it is eyeing an IPO in 2016-17. "We hope that with the new government, the market for IPO will improve," said Mahesh Jalan, executive director, Gayatrishakti Paper & Boards.

According to the company, the packaging industry is growing at 10-13% CAGR and is expected to grow by 18% by 2016.

The tenure of the fund is June 2018, Canbank Venture executive said.

Private equity firm Kedaara Capital has bought minority stake in Mahindra & Mahindra Ltd's subsidiary Mahindra Logistics for Rs 200 crore, the latter said in a release today. Mahindra Logistics provides third-party logistics services.

"This is a significant step towards an IPO (initial public offering) by 2017 and achieving our vision of being India's most preferred integrated logistics service provider," the release quoted Pirojshaw Sarkari, chief executive officer of Mahindra Logistics, as saying.

This transaction is Kedaara Capital's debut investment, having raised a corpus of $540 mln for its maiden fund in October.