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Government launches 'Ubharte Sitaare Fund' for export-oriented firms and startups.

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    21st Aug, 2021

The Government launched the ‘Ubharte Sitaare Fund’ for export-oriented small and mid-sized companies, jointly sponsored by Exim Bank and SIDBI.

Context

The Government launched the ‘Ubharte Sitaare Fund’ for export-oriented small and mid-sized companies, jointly sponsored by Exim Bank and SIDBI.

About 

  • Launched in: Lucknow, Uttar Pradesh.
  • 'Ubharte Sitaare Fund', also known as Alternate Investment Fund is expected to identify Indian enterprises with potential advantages by way of technology, products or processes along with export potential.
  • Sponsorship: The fund is jointly sponsored by the Exim Bank of India and SIDBI.
    • They will invest in the fund by way of equity and equity-like products in export-oriented units, in both manufacturing and services sectors.
  • The fund will also have a greenshoe option of Rs 250 crore.

Greenshoe option

  • Also known as an 'over-allotment option', it is a provision in an IPO underwriting agreement that provides the underwriter with the right to sell more shares than originally planned.
  • It enables the investment bank representing the underwriters to support the share price after the offering without putting their own capital at risk.
  • The fund is a mix of structured support, both financial and advisory services through investments in equity or equity like instruments, debt (funded and non-funded) and technical assistance (advisory services, grants and soft loans) to the Indian companies.

Recent development by Exim bank and SIDBI

  • Exim Bank and SIDBI have developed a pipeline of over 100 potential companies, including those in Uttar Pradesh across various sectors such as
    • Pharma
    • Auto components
    • Engineering solutions
    • Agriculture
    • Software

Verifying, please be patient.

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