Date:03/07/2006 URL: http://www.thehindubusinessline.com/2006/07/03/stories/2006070302941500.htm

Back KVCF decides to return funds to contributors

Our Bureau

Kochi July 2

The Board of Directors of Kerala Venture Capital Fund has decided to return funds to its contributors, out of the profits that it has been able to generate on its investments. Steps to return the contributors' funds have already been set in motion.

KVCF, promoted by the Small Industries Development Corporation of India, the Kerala State Industrial Development Corporation and the Kerala Financial Corporation, commenced operations in 2001 with the objective of investing in hi-tech areas such as Information Technology in the State.

However, based on the actual experience of operations, the investment objectives and priorities have been modified so as to include other areas such as tourism, rubber and processes based on advanced materials, a release from the company said.

NEW VENTURES

The Board also approved participation in 14 new ventures, of which funds have already been disbursed to six cases. The portfolio predominantly comprises of enterprises in technology areas.

Meanwhile, the process of exit has already commenced with respect to two cases. With this, the Fund has already set up a trend of profitable exits from enterprises now functioning in the state. KVCF has already initiated steps to return the shares to the respective contributors from the capital gains and profits generated by the Fund.