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Ubharte Sitaare Alternative Investment Fund

Ubharte Sitaare Alternative Investment Fund:

The Ministry of Finance has launched ‘Ubharte Sitaare’ Alternative Investment Fund to facilitate debt and equity funding to export-oriented MSMEs (Micro Small and medium Enterprises).

  • The fund is expected to identify Indian enterprises with potential advantages, but which are currently underperforming or unable to tap their latent potential to grow.
  • Under the scheme, an identified company is supported even if it is currently underperforming or may be unable to tap its latent potential to grow.
  • The scheme diagnoses such challenges and provides support through a mix of structured support covering equity, debt and technical assistance.
  • It will also have a Greenshoe Option of Rs 250 crore.
  • A greenshoe option is an over-allotment option, which is a term that is commonly used to describe a special arrangement in a share offering for example an IPO (Initial Public Offering) that will enable the investment bank to support the share price after the offering without putting their own capital at risk.
  • The fund has been set up jointly by Exim Bank and SIDBI (Small Industries Development Bank of India) which will invest in the fund by way of equity and equity-like products in export-oriented units, in both manufacturing and services sectors.

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