A STUDY ON

“VENTURE CAPITAL FINANCE”

WITH REFERENCE TO ANANDH RATHI

COLLEGE: ELLENKI COLLEGE OF ENGG & TECH
G PRASHANTH
Roll: 18C71E0088

1
 ABSTRACT

Services dominate
today’s world
economy as aresult
of the considerable
growth of the
service sector over the
last decades. e
countries’ economies
depend nowadays on
service
industry, which
contributes to alarge
2
extent to the national
wealth and has
become an impor-
tant source of
employment. Growing
number of services has
intensied
competition among
companies, which
have to employ new
strategies and tactics

3
to respond to
customers’ chang-
ing needs and
expectations. Services
have come to be
perceived as an
important source of
dierentiation and
away of gaining
competitive advantage
in the market. Even
manufactur-
4
ers are turning to
service aspects of their
operations to build
brand preference and
increase
market share. As
aconsequence of the
emergence of service
economy, profound
knowledge
and skills in marketing
and managing services
5
have become crucial
for abusiness
success of
acompany.
Services dominate
today’s world
economy as aresult
of the considerable
growth of the
service sector over the
last decades. e
countries’ economies
6
depend nowadays on
service
industry, which
contributes to alarge
extent to the national
wealth and has
become an impor-
tant source of
employment. Growing
number of services has
intensied
competition among
7
companies, which
have to employ new
strategies and tactics
to respond to
customers’ chang-
ing needs and
expectations. Services
have come to be
perceived as an
important source of
dierentiation and
away of gaining
8
competitive advantage
in the market. Even
manufactur-
ers are turning to
service aspects of their
operations to build
brand preference and
increase
market share. As
aconsequence of the
emergence of service

9
economy, profound
knowledge
and skills in marketing
and managing services
have become crucial
for abusiness
success of
acompany.
Venture Capital is still a analogously adolescent industry. The industry did not
absolutely get on its anxiety until the backward 1970s. Now Venture Capital Costs has become
capital for the development of Potential entrepreneurs.

The study as well gives a abrupt description of the assorted stages of venture capital costs and
as well the appraisal adjustment for authoritative investment decisions .The activity blue-
blooded “Venture Capital Financing” was able for the purpose of presenting the alignment and
the assay of the firms’ banking aspects. The aboriginal allotment of the address highlights the
accent of venture capital in a developing country like India: it as well includes the assay of
banking statements. And the allotment change in the Assets and Liabilities over a aeon of 3
years. The additional allotment deals with the banknote flows. It as well presents assorted
stages in appraisal process. The final allotment draws some cessation apropos the account and
limitations of venture capital.
10
The study is aimed to assay the activity appraisal arrangement at NAVABARATH
VENTURES which includes allegory the banking statements and banknote flows.

11
 CONTENTS

CH. NO. PARTICULARS PAGE NO.

CHAPTER -1 INTRODUCTION

OBJECTIVE

NEED OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY
LIMITATIONS

CHAPTER -2 Review Of Literature

CHAPTER -3 COMPANY PROFILE

INDUSTRY PROFILE

CHAPTER-4 ANALYSIS & INTERRETATION OF THE STUDY

CHAPTER -5 FINDINGS
SUGGESTIONS
CONCLUSIONS

BIBLIOGRAPHY

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 CHAPTER-1
INTRODUCTION

13
 INTRODUCTION

Venture capital investment, nurtures the advance of avant-garde

entrepreneurship. Venture capital has developed as a aftereffect of the charge to accommodate
non-conventional, chancy accounts to new venture based on avant-garde entrepreneurship.
Venture capital investments could be in the anatomy of equity, apparent disinterestedness and
sometimes debt (straight or conditional) fabricated in new or anarchistic concepts, answer by a
technically or professionally able entrepreneur. Investment in the anatomy of debt and
disinterestedness backpack abundant accident and uncertainties. The accident accompanied by
a activity / may be so top to aftereffect in accident or low so as to aftereffect in top gains, as
such venture capital is advised as accident capital.

The venture capital academy which emerged the apple over to ample gaps in accepted banking
apparatus focused on new entrepreneurs, commercialization of new technologies and to
abutment baby and average action in the accomplishment and account sectors. Over the years,
the study of venture capital has undergone cogent charges.

Although the development of the venture capital started in the US in the mid-fifties, venture
capital institutions are of adequately contempo agent in India. Before their emergence, the
development of banking institutions partially played the role of venture capitalists by
accouterment abetment for absolute disinterestedness accord to ventures in the pre-public affair
date and by selectively acknowledging new technologies. The antecedent accomplish for the
institutionalization of venture capital in India were taken by the Government in November,
1998 if guidelines were issued for ambience up of venture capital funds / companies
(VCF/VCC) for advance in unlisted companies and to account of a concessional ability of
capital assets tax.

Venture capital accounts in India was accepted back nineties. It is now has auspiciously
emerged for all the business firms that yield up chancy projects and accept top advance
prospects. The clandestine alignment which does not wish to yield accounts from the
association may accept their appearance on venture capital. It has abeyant to become an
important antecedent for costs of small-scale enterprises (SSEs).Venture capital accounts is
generally anticipation of as ‘the aboriginal date costs of new and adolescent enterprises
gluttonous to abound rapidly. According to Pratt: There is a accepted delusion that high-
technology is the arch active agency abaft the investment accommodation of a US venture
capitalist.
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Only a baby boyhood of venture capital investments are in new concepts of technology area
abeyant abstruse problems add a cogent bulk of accident to the new business development

Government of India back ability has been auspicious baby industry development by
accouterment basement development and banking concessions. However, the baby industry
with beginning technology acquisition it difficult to accession the antecedent capita, as the
Development Banking Institutions (DFIs) which had been partially arena the role of adventure
capitalists by accouterment abetment for absolute disinterestedness accord to ventures in pre-
public affair date and by selectively acknowledging new technologies, aswell do not appear
advanced for costs such ventures.

An administrator attached an abstinent technology or introducing an innovate abstraction (but

after funds of his own or abetment of any automated house) had around boilerplate to go as
there was no anatomy of institutional allotment except from Development Banking Institutions.
These funds were aswell not accessible for baby operations with ambiguous technology.
Besides, these institutions accord appellation loans admitting the charge is for equity. The
Government of India acquainted the charge of adventure basic armamentarium in India in the
ambience of structural development and advance of baby calibration business enterprises. Back
again adventure basic has appear a continued way in the adorning path. Adventure basic that
has been one of the a lot of cogent factors amenable for the abstruse advance acquired and
maintained by abounding western countries, was alien as a new banking account in the
budgetary account for the year 1986-87 by the Government of India. In 1988-89 the Indian
Government formulated a set of adventure basic guidelines to advance adventure basic
investment in new companies and accommodate some concessional analysis of basic gains.
Back again a amount of banking institutions and banks accept created windows for adventure
capital.The schemes offered by a lot of of these institutions focus on projects with abstruse
accident and accommodate abutment to aboriginal accomplishment in technology development.
The costs concepts are home developed and acclimatized to the Indian acknowledged
environment. Unlike absolute disinterestedness costs in USA these institutions action both
disinterestedness and debt instruments. Some of the areas adjourned are chancy ventures in
technology development and continued evolution technology development projects. Greater
absorption is focused on alone proposals even if the aggregate of investment is small. Major
Fields of investment in India through adventure basic cover software, biotechnology, actinic
polymers, drugs and pharmaceuticals, ambiance engineering non-conventional activity etc.

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 OBJECTIVE OF THE STUDY

• The capital objective of this address is to appraise accent of the assorted key variables that are
advised while allotment a venture.

• To accept assorted analytic techniques acclimated to analyses the assorted key activity
variables.

• To study the impact of those key variables on the all-embracing project.

• To study of the investment appraisal techniques will advice in assessing the approaching
bread-and-butter affairs of the proposed investment.

• To use those variables to analysis the air headedness of the proposed investment which will
advice to analyze the project’s a lot of important, awful acute variables.

• To appraise the assorted stages of venture capital financing.

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 NEED FOR THE STUDY

There is immense charge and accent of the activity plan as the activity plan deals with
venture capital financing. It is absolutely important that the ventures should be adjourned
appropriately and again alone they should be financed so that they would crop adapted
allotment in a defined period.

It is important to study venture capital costs because there are the venture, which leads to the
bread-and-butter development of the country.

As there is all-inclusive access in the amount of professionals and venture capital firms in India
the accent to study the activity anytime added essential.

There is charge to assay the amount of able and venture capital firms the activity becomes even
added essential. There is a charge to assay the amount of venture capital institutions, which
absolutely accord to the countries civic income. The assay of the venture capital firms is bare
because it gives the bright account of the advance of the firms.

17
 SCOPE OF THE STUDY
The absolute ambit of the activity is bound to admiration of the projected variables and to
analysis the air headedness of the data. Only on accepting the accoutrement and alignment the
activity will aswell cover appraisal of the activity accident and compassionate the attributes of
ambiguity surrounding the key investment variables. The ambit of the study would extend to
action the accident implications on the acknowledgment from the investment.

18
 RESEARCH METHODOLOGY

The activity venture capital costs outlines assorted appraisal methods for demography
investment decisions. Three capital methods acclimated for this purpose are accepted appraisal
method, present amount abject adjustment and acquirement multiplier method. We accept
acclimated present amount abject adjustment in our project, area in we accept affected the
banknote breeze and discounted them at the firms appropriate amount of return. We accept as
well activated the banknote flows beneath altered scenarios for demography investment
decisions. The abstracts was calm application both the primary and accessory methods of
collection.

DATA COLLECTION METHOD:

Two methods of abstracts are acclimated to conduct this study. They are

a) Primary data

b) Secondary data

Primary data:

This adjustment includes the abstracts calm from the claimed discussions with the accustomed
controlling of the alignment Navabarath Ventures.

Secondary data:

The accessory accumulating methods includes the abstracts calm from the news, magazines,
advice from web based analysis and altered books.

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 LIMITATIONS

 The major constraint of the project is that the data analyzed is for limited
period of 3 years.

 The financial information of the company was confidential which was not
revealed by the management.

 The information is analyzed using primary and secondary sources thus are
subject to slight variations than what the study includes in reality.

 As the time period allotted for the project was only 45 days the study could
not be don in detail.
 The accuracy of the project will depend upon the quality of the available data
and the tools available for analyzing it.

 The study is listed to only one company.

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 CHAPTER-2
REVIEW OF LITERATURE

21
 REVIEW OF LITERATURE

Name of the author : D.Aruna kumar

Date : Jan 8.2019

Link : www.globalfinancilwatch.com

Title : The Venture Capital Funds in India.

According to a address on “The Venture Capital Funds in India” by D. Aruna Kumar Assistant
Professor (Finance & Accounting Area) Lokamanya Tilak PG College of Management, states
that there has been a abatement in advance of venture capital. Business due to assorted affidavit
which accept been categorical in the report.

This address outlines the study and agent of Venture capital, traces its advance , and highlights
the venture capital regulations. It has briefly explained about the, assorted types of venture
capital funds and the venture capital action in India. A simple case on aboriginal venture capital
armamentarium in India, technology de4velopment & advice aggregation of India Ltd., has as
well developed with absolute remarks.

The address concludes that the regulator has to liberalize the acrimonious behavior and pave
the way to the venture capital investors to esplanade their funds in a lot of assisting ventures.
Admitting an attack was as well fabricated to acceleration funds from the accessible and
armamentarium new ventures, the venture backer had hardly any impact on the bread-and-
butter book for the next few years. At present abounding investments of venture backer in India
abide on cardboard as they do not accept any agency of exit. Appropriate changes accept to be
fabricated to the absolute arrangement in adjustment that venture backer accretion it easier to
apprehend their investments afterwards captivation on to them for a assertive aeon of time.

LITERTURE SURVEY 2:

Name of the columnist : Paul Mc Namara

Date : August 26-2020

Link : www.findarticles.com

Title :Islamic venture capital.

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If the Islamic clandestine disinterestedness industry has bootless to reside up to its expectations
again Islamic vanture capital has followed the aforementioned aisle with even beneath amazing
results. Absolutely altercation of Islamic venture capital is abundantly theoretical bacause
absolute activity examples are few and far between. The government of malaysia has done
added than any added physique to advance and ascertain the industry and absolutely has
launched a fund, admitting a baby $10m funds, to advice appearance the way.

The clandestine area has a few examples of Islamic vanture capital at plan but the
absoluteness is that about there are misnamed Islamic clandestine disinterestedness efforts, and
yet vanture capital and Islamic accounts are custom-built for anniversary other.

Rather like its accessory clandestine equity, venture capital is a approach of advance that seems
absolute for Islamic accounts through the appliance of assorted Islamic costs concepts, with the
Mudarabah study getting the a lot of common.

Venture capital actuality is authentic as the accouterment of berry capital for a new ventur in
the action of getting established, rather than the accouterment of capital to a baby business to
facilitate its growth.

As with its accepted counterpart, Islamic vanture capital appeals a lot of to investors who
accept a area or an industry intomately and are able to accident allocation of their capital on the
backbone of a business plan, the administration aggregation of the proposed business, and their
own adeptness to aces a winner.

Added similarities amid Islamic vanture capital and accepted vanture capital awning the
actuality that accord sizes are baby if compared to clandestine disinterestedness transactions,
back the startup capital that is appropriate for a beginning baby business trnds not to awning
monies for affected business and bartering affairs but tends to be abundant added bourgeois in
its outlook.

Some capital attempt explained:

The assumption of Musharakah in venture investing

In the ambience of Islamic vanture capital Musharakah costs is a accomplice address formed
amid parties to accounts a business vanture wher the parties accord capital either in the
anatomy of banknote or in kind. Profits are broadcast based on a pre-agred ratio. Losses are
aggregate on the base of capital contridution to the vanture.
23
The assumption of Wakalah in vanture investing

In Wakalah costs a arrangement from one affair gives the ability to addition affair to act on his
behalf, based on the agreed agreement and conditions.

Venture capital in the ambience of Islamic finance

The area of Islamic vanture capital had been abundantly abandoned in the GCC until recantly
bacause of the abridgement of an ‘entrepreneur class’ which is capital for the developmant of a
advantageous ventur capital environment: young, ablaze humans with abundant business
account and a assurance to accomplish a success of their business. As the apple becomes added
of a all-around marketplace, and as the apprenticeship and abilities akin of adolescent humans
in the arena increses, again venture advance forth Shariah-compliant curve may become added
commen.

Capital is one of the a lot of important factors of production. Entrepreneurs appear beyond
abrade adversity to annex capital for the anew floated enterprises, as at the antecedent date of
the business, accident is actual top and allotment absolutely ambiguous because of which the
accepted investors alternate to advance their accumulation in such companies. Unlike
acceptable business finance, the investors for the accessible affidavit do not favor the
companies acceptable to appoint in chancy curve of business. Now, a catechism arises- how
baby this blazon of firms be financed? Under these circumstances, the study of venture capital
armamentarium was developed so as to accommodate non-conventional, chancy accounts to
new ventures based on avant-garde entrepreneurship. The appellation venture capital comprises
of two words via ‘Venture’ and ‘Capital’. The concordance acceptation of ‘Venture’ is a
advance of proceedings, the aftereffect of which is uncertain, but which is abounding by the
accident of crisis of accident and the appellation ‘Capital’ agency recourses to alpha the
enterprise. In a attenuated faculty venture capital is accepted as capital, which is accessible for
costs new business venture. In the broader faculty venture capital can be interpreted as a
investment of continued appellation disinterestedness finance, if the venture backer earns his
allotment primarily from capital gains. Venture capital is an investment in the anatomy of
equity, quasi-equity and some times debt –straight or conditional, fabricated in new or green
concepts, answer by a technically or professionally authorize entrepreneurs. Venture capital
agency accident capital. It refers to capital investment, both disinterestedness and debt, which
carries abundant accident and uncertainties. The accident envisaged may be actual top may be
so top as to aftereffect in absolute accident or actual beneath so as to aftereffect in top gains.

24
DEFINITION OF VENTURE CAPITAL:

Carleton (1986): “venture capital refers to investment in new, baby and chancy companies,
abnormally those based on bartering applications of abstruse innovations”.

J.C. Verma: “Venture Capital costs is clandestine disinterestedness investment in companies

which are clumsy to access accounts either from accepted investors or bankers in the
accustomed advance of business ambidextrous because of the afterward inhibiting factors:

1. Small admeasurement of capital bazaar and poor bazaar capitalization.

2. Hence abridgement of clamminess of acclaim investments.

3. Low accident exceptional and low acknowledgment on investments.

4. Lack of abounding disclosures and transparency.”

Characteristics:

The capital attributes that characterize Venture Capital investments are:

• Investments are about disinterestedness investment.

• The acknowledgment of the investment is burdened as capital accretion rather than

accustomed income.

• Investment is maid in new enterprise, application new and ambiguous technology in

apprehension of college accretion and abstract return.

• Venture Capital investment does not baffle in the management.

• Forth with the disinterestedness finance, added abetment in the anatomy of apparent equity,
codicillary loan.

• Normal aegis backed loans may aswell be advised not in isolation.

• Investment is fabricated alone in top accident but top advance abeyant projects.

• Risk assay forms a aloft appraisal exercise for venture capital assistance.

25
• Finance is continued alone if accident factors are account by even college anticipation of
success.

• Investment is usually in baby and average calibration enterprise, finer start-ups.

2.4 Stages of venture financing:

The alternative of investment by a VCI is accompanying to the stages and blazon of

investment. The altered stages of investments are accustomed and alter as commendations the
time-scale, accident perceptions and added accompanying characteristics of the investment
accommodation action of the VCIs. The stages of costs abatement into two categories:

A. Early stage, and

B. Later stage.

Under anniversary of the aloft there are altered stages of access for altered Venture Capital
companies.

A. Early date finance: this date includes (1) berry capital /pre-start-up, (2) start-up and (3)
second-round financing.

Seed Capital: This date is an activated analysis appearance area the concepts and account of the
promoters aggregate the base of a pre-commercialization analysis activity usually accepted to
end in a prototype, which may not advance to a business launch. This appearance gradually
moves appear the development appearance arch to a ancestor artefact testing and again to
commercialization.

Start-up: This is the date if bartering accomplishment has to commerce. Venture Capital costs
actuality is provided for artefact development and antecedent marketing. The aspect of this date
is that the product/service is getting commercialized for the aboriginal time in affiliation with
the VCIs.

Second annular financing: this represents the date at which the artefact has already been
launched in the bazaar but the business has not yet become assisting abundant for accessible
alms to allure new investors.

26
B. Later date financing: this date of costs involves accustomed businesses, which crave added
banking abutment but cannot yield recourse to accessible issues of capital. It includes (1)
mezzanine/development capital, (2) bridge/expansion, (3) buyouts, and (4) turnarounds.

Mezzanine/development capital: this is costs of accustomed businesses which accept affected

the acutely high-risk aboriginal stage, accept recorded profits for a few years but are yet to
ability a stage, if they can go accessible and accession money from the capital
market/conventional sources.

Bridge/expansion: venture capital undertakings use such affairs to aggrandize business by way
of advance of their own advantageous asset or by the accretion of added firms/assets of added
firms. It represents a endure annular of costs afore exit.

Buyouts: These accredit to the alteration of administration control. They abatement into two
categories: (a) administration buyouts (MBOs), and (b) administration buyins (MBIs).

Management buyouts (MBOs): these are accoutrement of funds to accredit absolute

administration or investors to access an absolute artefact line/business.

Management buyins (MBIs): these are provided to accredit an alfresco accumulation buy an
advancing venture/company.

Turn about financing: it is provided to bodies for accepting a applicable non-performing

aggregation and deepening its operation.

2.5 Forms of Venture Capital Assistance:

Venture capital, usually, is accessible in the afterward forms:

1. Equity – the capital apparatus of costs of investment is disinterestedness shares of assisted

companies. The venture capital companies acquirement the shares at par. They can authority
upto49 percent of the absolute disinterestedness of the assisted company. Such
disinterestedness capital can aswell be a allotment of promoter’s contribution.

2. Conditional loans – it is a quasi-equity apparatus advised so that it does not appoint a ache
on the assisted companies during analytical aeon and claim of this accommodation including its
application is absolutely affiliated to success of the company. Typically the codicillary loans
are repayable over 5-8 years. Either a allegation on sales (royalty) or allegation on

27
accumulation furnishings the claim and servicing. This becomes all-embracing already
aggregation starts authoritative profit. They may be anchored adjoin able accessory and may be
convertible into equity.

Conventional loans -¬ these instruments backpack lower absorption initially which increases
afterwards bartering assembly commence. A baby ability is additionally allegation to awning
the absorption foregone during the antecedent year. Although the claim of the arch is based on
a pre-stipulated schedule, VCIs usually do not assert aloft mortgage/other security

28
 CHAPTER-3
COMPANY PROFILE
INDUSTRY PROFILE

29
 COMPANY PROFILE

Anand Rathi Share AND Stock Brokers Bound is a Non-govt company, congenital on
22 Nov, 1991. It's a accessible unlisted aggregation and is classified as 'company bound by
shares'.

Company's accustomed capital stands at Rs 1000.0 lakhs and has 86.91648% paid-up capital
which is Rs 869.16 lakhs. Anand Rathi Share AND Stock Brokers Bound endure anniversary
accepted accommodated (AGM) happened on 29 Sep, 2017. The aggregation endure adapted
its financials on 31 Mar, 2017 as per Ministry of Corporate Affairs (MCA). Anand Rathi Share
AND Stock Brokers Bound is majorly in Finance business from endure 29 years and currently,
aggregation operations are active. Current lath associates & admiral are ANAND RATHI,
PRITI PRADEEP GUPTA, ROOP KISHOR BHOOTRA, VISHAL JUGAL LADDHA,
PRADEEP KUMAR GUPTA and JUGALKISHOR MANTRI.

Anand Rathi – Overview Anand Rathi is a arch abounding account investment coffer founded
in 1994 alms a advanced ambit of banking casework and abundance administration solutions to
institutions, corporations, high–net account individuals and retail. The close has rapidly
broadcast its brand to over 700 locations beyond India with all-embracing attendance in Dubai,
Hong Kong & New York. Founded by Mr. Anand Rathi and Mr. Pradeep Gupta, the
accumulation today employs over 3,500 professionals through out India and its all-embracing
offices. Private Abundance Management: Able HNI Relationship •Access to affluent families
in India accepting added than 25,000 crores of investible surplus. •Anand Rathi has been voted
#1 by Asia Money Polls for 2 after years: 2009 – No.1 Domestic Private Coffer 2010 – No.1
Domestic Private Coffer •Our applicant abject is a able affidavit to our acquaintance in
managing abundance of ample families and institutions. •Easy and quick admission to capital
through our absolute applicant relationships which includes Promoters of ancestors endemic
business, Top administration of arch companies, Professionals, Corporate treasuries and trusts.
•Credited with developing and affairs some of the a lot of avant-garde articles in the market.
Able Retail Distribution Network: Nationwide Reach •Anand Rathi’s retail brand extends
beyond over 700 locations beyond India. •Manage added than 3.5 lakh applicant accounts
beyond the country, with a circadian about-face of about INR 20 billion. •Strong artefact
portfolio which includes Equities, Derivatives, Commodities, IPOs, Alternate Funds, Life &
Non Life Insurance, Depository Casework and Bonds. •Leading benefactor of IPO, insurance,
alternate funds and third affair products. •We accept been ranked 8th amidst all brokers for

30
bulk acquired in IPO’s in India during January to June 2010 by Prime Data base. The firm’s
aesthetics is absolutely applicant centric, with a bright focus on accouterment continued
appellation amount accession to clients, while advancement the accomplished standards of
excellence, belief and professionalism

Our Company, accepting fabricated all reasonable inquiries, accepts albatross for and confirms
that this Draft Red Herring Prospectus contains all advice with attention to our Aggregation
and the Offer, which is actual in the ambience of the Offer, that the advice independent in this
Draft Red Herring Prospectus is accurate and actual in all actual aspects and is not ambiguous
in any actual respect, that the opinions and intentions bidding herein are candidly captivated
and that there are no added facts, the blank of which makes this Draft Red Herring Prospectus
as a accomplished or any of such advice or the announcement of any such opinions or
intentions, ambiguous in any actual respect. Further, the Promoter Affairs Shareholder accepts
albatross alone for the statements fabricated by the Promoter Affairs Shareholder in this Draft
Red Herring Prospectus as a Promoter Affairs Shareholder in the ambience of the Offer and the
Equity Shares offered by the Promoter Affairs Shareholder in the Offer and confirms that such
statements are accurate and actual in all actual respects and are not ambiguous in any actual
respect.LISTINGThe Equity Shares, if offered through the Red Herring Prospectus, are
proposed to be listed on BSE and NSE. Our Aggregation hasreceived “in-principle” approvals
from BSE and NSE for advertisement of the Equity Shares pursuant to their belletrist
anachronous [●] and [●], respectively. For the purposes of the Offer, the Designated Stock
Exchange shall be [●]. A archetype of the Red Herring Prospectus and the Prospectus shall be
delivered to the RoC for allotment in accordance with the Companies Act, 2013. For data of the
actual affairs and abstracts that will be accessible for analysis from the date of the Red Herring
Prospectus up to the OfferClosing Date, see “Material Affairs and Abstracts for Inspection” on
page 458 ofthis Draft Red Herring Prospectus

31
 INDUSTRY PROFILE

India has a widened banknote accompanying breadth encountering quick

augmentation, both to the admeasurement able beforehand of complete bread-and-butter
organizations firms and new accoutrement entering the market. The assay includes business
banks, advocacy offices, non-banking bread-and-butter associations, co-operators, adeptness
holds, capital assets and added added diminutive banknote accompanying components. The
bread-and-butter agent has acclimatized new components, for instance, portions banks to be
bogus starting astern alternating these ambit abacus to the sorts of accoutrement animate in the
region. In any case, the money accompanying assay in India is overwhelmingly a bread-and-
butter allocation with business banks speaking to in antithesis of 64 percent of the harder and
fast assets captivated by the bread-and-butter system.

The Government of India has acclimatized a brace of changes with change, guard and
beforehand this industry. The Government and Reserve Coffer of India (RBI) acquire taken
different measures to appetence capital acceptance to ashamed for Micro, Small and Medium
Enterprises (MSMEs). These measures consolidate melancholia Acclamation Guarantee Fund
Scheme for Micro and Small Enterprises, arising guideline to banks with annual to advocacy
essentials and ambient up a Micro Units Development and Refinance Agency (MUDRA). With
a affiliated beforehand by both government and artful division, India is no if bend or buts one a
lot of alive capital markets. In 2017,a new breach declared 'UdyamiMitra' has been apprenticed
by the Small Industries Development Coffer of India (SIDBI) with the purpose of ambulatory
acclamation availability to Micro, Small and Medium Enterprises' (MSMEs) in the country.
India has asperous a complete 10 in guaranteeing cyberbanking specialists' rights on the
ashamed of changes able by Securities and Bargain Board of India (SEBI).Government
Initiatives December, 2018, Securities and Bargain Board of India (SEBI) proposed astute
abroad advertisement of Indian associations and added authentic changes. It has accordance
associations a progressively abounding money accompanying able base, bigger valuation,
connected care, agent appliance and credible quality

Bombay Blah Bargain (BSE) displayed consistently diplomacy and choices diplomacy on
Sensex 50 annual from October 26, 2018.

32
In September 2018, SEBI mentioned recommendations to strengthen rules which will
beforehand the accustomed alignment standards for patrons, providers in the banknote
accompanying market.

The Government of India pushed India Post Payments Coffer (IPPB),to accordance every
breadth one addendum which will admonition admission accustomed passageway. As of
August 2018, two branches out of 650 branches are starting at now operational.

Road Ahead

India is today one of the a lot of alive all-embracing economies, on the ashamed of cool
accounts and allowance regions. The advancement up of alfresco admission standards has
gotten a complete acceptance from the allowance part, with different associations complete
plan to extend their stakes in aggregate below antithesis with Indian associations . Over the
advancing abode there could be a movement of aggregate below demography deals amidst all-
embracing advocacy goliaths and adjacency players.

The Association of Mutual Funds in India (AMFI) is apperception on about 5 coffin

beforehand in assets below alignment (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a
adapted challenge beforehand in examiner annual to 130 amateur by 2025.

India's bunched wallet industry is evaluated to accomplish at a Compound Annual Growth Rate
(CAGR) of 150 percent to adeptness US$ 4.4 billion by 2022 while adjustable wallet trades to
associate Rs 32 affluence (USD $ 492.6 billion) by 2022.

Money is the pre-essential for present day business and bread-and-butter establishments acquire
a able action in the banknote accompanying framework. It is through money accompanying
markets and foundations that the bread-and-butter beforehand of action of an abbreviation
works.

Money accompanying markets affectionate the institutional courses of action for accustomed
Bread-and-butter assets and acclamation instruments of different sorts ,for example,
cash,checks,bank aliment allege allowance bulk and afresh .Cash accompanying bargain is a
activate depicting any business centermost breadth purchasers and venders allocation in the
exchanging of favorable circumstances, for example, values, insurances, bread-and-butter
standards and subordinates. They are frequently depicted by accepting complete evaluating,

33
capital attack on exchanging, costs and allege and bargain admiral acerbic the costs of
assurances that exchange.

For the a lot of part, there is no authentic atom or breadth to accredit a bread-and-butter market.
Wherever a money accompanying bargain happens, it is admired to acquire occurred in the
bread-and-butter market. In this abode cyberbanking markets are constant in attributes aback
money accompanying exchanges are themselves assertive all through the bread-and-butter
structure. For example, activity of huge annual offers, acknowledging of beforehand by
appellation crediting affiliations, affluence of banknote into a bank, buy of debentures, closeout
of offers, etc.

In a accustomed sense, bread-and-butter markets are the acclamation markets brainwork about
the adapted needs of the all-embracing public, firms and foundations by enabling accepting and
diplomacy of bread-and-butter resources, cases and associations.

Central market

Primary bargain is a business attainable admission for new issues or new banknote
accompanying cases. From this time avant-garde it is analogously declared as New Activity
Market. It in a accustomed adroitness deals with those insurances which are issued to the far
all-encompassing adjustment suddenly. The market, as such, makes attainable accession candid
of assurances for attainable another .Everything apprehension of It as ,oversees adopting off
alpha capital by affiliations either for banknote or for apprehension added than cash. So aswell
as could be accustomed be Initial Attainable Offering (IPO) breadth a abutting intends to
individuals all about out of the blue.

Aide exhibit:

Secondary bargain is the atom complete assurances are exchanged. Constantly end, antithesis
which acquire as of astern able new activity highlight are exchanged this market. By and large,
such assurances are referred to in the blah bargain and it gives a determined and accustomed
bargain for accession and diplomacy of insurances.

34
35
 CHAPTER-4
DATA ANALYSIS
AND INTERPRETATION

36
1. name of company ______________ Navabharath venture _______________

1. Age of Company in years

s.no age VC’S %

1 0-5 12 24
2 6 to 10 8 16
3 11 to 15 16 32
4 15 above 14 28
  total 50 100

100
100
90
80
70
60 52 50
48
50
40
26 24
30
20
10
0

vc's %
INTERPRETATION: Above graph represents disclosed about company started 16 joint
venture companies having 11-15 yrs have age.

37
 3. Market capitalization of your company?

s.no 0pinion VC’S %

1 small cap 10 20

2 mid cap 9 18

3 large cap 16 32

4 mega cap 15 30

  any other 0 0

  total 50 100
100
100
90
80
70
60 52 50
48
50
40
26 24
30
20
10
0

vc's %

INTERPRETATION: Above graph represents market capitalization for making investments

segregated for small cap ,mid cap,large cap,mega cap, for capitalization.

38
 4.How many companies have you funded till today?

s.no 0pinion VC’S %

1 Less than 20 13 26
2 20 to 100 11 22
3 100 to 500 16 32
4 more than 500 10 20
  any other 0 0
  total 50 100

35 32 31
29
30 27
23
25 21
18 19
20

15

10

5
0 0
0
1 2 3 4 5

VC'S

INTERPRETATION: Above graph shows funding daily 100 to 500 joint venture capitalists.

39
 5. How many investments does your company make every year?

s.no 0pinion VC’S %

1 Less than 20 16 32

2 20 to 49 11 22

3 50 to 99 14 28

4 above 100 9 18

  total 50 100

100
100
90
80
70
60 52 50
48
50
40
26 24
30
20
10
0

vc's %

INTERPRETATION: Above graph tells which is most likely make investment does like
every year less than 20 .

40
 6. What is your typical investment size? (In lakhs)

s.no 0pinion VC’S %

1 Less than 1 14 28
2 5 to 10 12 24
3 11 to 20 8 16
4 21 to 50 10 20
  more than 50 6 12
  total 50 100

35 32 31
29
30 27
23
25 21
18 19
20

15

10

5
0 0
0
1 2 3 4 5

VC'S

INTERPRETATION: Above graph represents disclosed about less than 1 year venture capital
company having risk for investments.

41
 7. Capital criteria for granting loans?

s.no 0pinion VC'S %

On the basis of company
1 size 16 32
Credit worthiness of
2 company 10 20
3 Relationship with customers 16 32
4 Encouraging Startups 8 16
  total 50 100

35 32 31
29
30 27
23
25 21
18 19
20

15

10

5
0 0
0
1 2 3 4 5

VC'S

INTERPRETATION: Above graph represents main purpose relationship with customers and
capital of companies have granting loans.

42
 8.There are various types/stages of venture capital financing. Which of these
would you consider?

s.no 0pinion VC'S 50    

    yes no % % total
1 seed financing 32 18 64 36 100
2 startup financing 27 23 54 46 100
3 early stage/growth finance 21 29 42 58 100
4 development/expansion finance 31 19 62 38 100
5 mezzanine financing 26 24 52 48 100
6 management buy in /buy out 32 18 64 36 100

100
90
80
70
60 VC'S yes
VC'S no
50
50 %
40 50 %
50 total
30
20
10
0
1 2 3 4 5 6

INTERPRETATION: Above graph represents disclosed about company stages for running
long term organizations.

43
 8. Which is the most preferred sector for funding?

s.no 0pinion vc's %

1 IT sector 11 22
2 Healthcare 9 18
3    Entertainment sector 14 28
4   Education 8 16
5 Financial services 6 12
6 any other specify 2 4
    50 100

100
90
80
70
60
s.no
50 0pinion
vc's
40
%
30
20
10
0
1 2

INTERPRETATION: Above graph shows about seeding capital for sectors 14 &11 %
having funds pooling for putting investments to setup venture capital companies.

44
 10.Interest rate charged for loans?

s.no 0pinion vc's %

1   Less than 5% 13 26

2 6 to 10% 9 18

3 11 to 20% 12 24

4   Above 20% 16 32

total 50 100
100
100
90
80
70
60 52 50
48
50
40
26 24
30
20
10
0

vc's %

INTERPRETATION: Above graph represents about interest rates charged for getting new
capital companies having above 20 % 16 companies.

45
 11. Credit rating important in case of companies?

s.no 0pinion vc's %

1 yes 26 52

2 no 24 48

  total 50 100

100
100
90
80
70
60 52 50
48
50
40
26 24
30
20
10
0

vc's %

INTERPRETATION: Above graph represents expressed about rating 26 joint venture

companies having positive.

46
b) Which credit rating agency are you connected to?

s.no vc response %
1 CRICIL 6 12
2 ICRA 12 24
3 CARE 6 12
4 SMERA 11 22
5 FITCH 7 14
6 ANY OTHER SPECIFIED 8 16
    50 100

s.no vc response % 100

50

24 22
14 16
12 12 12 11
6 6 7 6 8
3 4 5
10 20 0 0 0 0

1 2 3 4 5 6
INTERPRETATION: Above graph represents expressed about rating 26 joint venture
companies having positive.

47
 12. Is collateral mandatory?

11 Is collateral mandatory?    

s.no 0pinion vc's %

1 yes 34 68

2 no 16 32

  total 50 100

100
100
90
80 68
70
60 50
50
34 32
40
30
16
20
10
0

Is collateral mandatory? vc's Is collateral mandatory? %

INTERPRETATION: Above graph represents expressed about rating 26 joint venture
companies having positive.

48
 13. What type of collateral you prefer?

s.no 0pinion vc's %

1 equities 21 42
2 assets 12 24
3 Bills receivables 15 30
4 all of the above 2 4
  total 50 100

100

50
42

30
24
21
15
12
2 4

INTERPRETATION: Above graph represents collateral prefer equities for main financial
instruments to make investments.

49
 14. What percentage is required as collateral?

s.no 0pinion vc's %

1   Less than 25% 11 22
2 25 to 50 % 6 12
3 51 to 75% 13 26
4 76 to 99 % 15 30
more than 100 5 10
  total 50 100

100
100
90
80
70
60 50
50
40 30
26
30 22
13 15
20 11 12 10
6 5
10
0

vc's %
INTERPRETATION: Above graph represents requirement as collateral 76 to 99 % for 15
VC’s

50
 15.a)Do you charge same Interest rate for all?

s.no 0pinion vc's %

1 yes 27 54

2 no 23 46

total 50 100

100
100
90
80
70
54
60 50
46
50
40 27
23
30
20
10
0

Is collateral mandatory? vc's Is collateral mandatory? %

INTERPRETATION: Above graph represents 27 % joint ventures companies said yes for
charge interest for loan.

51
 CHAPTER-5
FINDINGS, SUGGESTIONS, CONCLUSIONS

52
 FINDINGS

The activity provides a counterbalanced presentation of the convenance of

and ambit for venture capital costs in India in the ablaze of all-around experience.

 The activity is disconnected into two parts; the aboriginal allotment provides detail annual of
convenance and procedures adopted by the venture capital industry in India as able-bodied as
its performance.

 The over all banking position of the aggregation is satisfactory as it is benign for the
company.After allegory the banking position of the aggregation it is begin that the the
advantage position is sound.Venture Capital Costs is acceptable antecedent of costs if accepted
agency of allotment is not accessible and it is not accessible in the accepted advance to annex
funds to accommodated the claim of disinterestedness capital for advised project.Therefore
afore advance absolute assay should be done on the banking aspect, business aspect and
analysis and adorning aspect.

 As the venture capital industry advance in alcove and sun acceleration industries VC has
cogent role in development of the economy.Growth of venture capital industry is abased on
assorted factors like action culture, tax action of Government and abiding bazaar action
anniversary of the factors have to be anxiously analised.

53
 CONCLUSIONS

Venture Capital costs about involves alpha up costs to advice technically sound,
globally aggressive and abeyant projects to compets in the all-embracing markets with the top
superior and reasonable amount aspect. Venture Capitalists draw their investment funds from a
basin of money aloft from accessible and clandestine investors. These funds are deployed about
as disinterestedness capital (ordinary and alternative shares) and some times as subordinated
debt which is a semi anchored investment in the aggregation (through debenture) baronial
beneath the anchored lenders that generally requires alternate repayment. Today, a VC accord
can absorb accepted equity, convertible adopted disinterestedness and subordinated debt in
altered proportions.

Despite the capital role it plays the venture capital industry has not so far developed as rapidly
in India as it has in the developed countries. The activity outlines the study of agent of venture
capital. Tracing its growth, and highlighting the venture capital regulations assorted types of
venture funds in India.

54
 SUGGESTIONS

• As in a activating bazaar characterized by articles obsolescence it needs to focus

accomplishment on developing new semiconductor chips.

• Avoidance of disruptions or adverse accumulation altitude arising from bazaar conditions.

• In adjustment to attain cogent allocation of acquirement it charge to depend on all-embracing

sales.

• The aggregation has to advance its adeptness to auspiciously attempt with added technology
firms in adhering and application key abstruse and administration personnel.

• In the accomplished as the semiconductor industry has been accountable to articles balance
assembly accommodation altitude should be controlled that will not furnishings in the
approaching operating results.

• The aggregation should advance in those projects which accord aboriginal returns.

• The aggregation should abetment in the development of new articles or services.

55
 BIBLIOGRAPHY
Web-sites referred
 www.apidc.org

 www.wikipedia.com

 www.indianbusiness.nic.in

 www.google.com

 www.sebi.gov.in

 www.ifc.org

 www.indiavca.org/upload/library/19_ivca_deloitte%20survey_2006.pdf

Books referred
 “Venture Capital Financing in India” – J.C. Verma

 “Financial Management” – MY Khan, PK Jain

 “Investment Banking and Financial Services” – ICFAI University

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