The type of financial instrument considered are Ordinary Shares, Preference Shares and Debenture. The issue of the type of instrument is decided on a case to case basis
Reedeemable Preference Shares
- Cumulative interest of 8% p.a (expected IRR: 8%) similar to the current price which considered.
- Debentures may be considered in the following specific cases:
- High risk project
- Strong asset based
- Non-company business entities can be considered e.g cooperative societies.
Ordinary Shares
Main terms and Conditions :
- Entry and Exit prices are determined by independent valuer and may be negotiated with the promoter.
- SEF will consider an investment through ordinary shares in the following cases:
- Investment above Rs 3 M
- Existing, well established and sound fundamentals and outlook
- Minimum of 1 Director will be appointed by the Board on the investee company
- The expected IRR for the project is expected to between 10% to 18% depending on risk level.
- The period of investment by SEF will be up to a maximum of 10 years.