India BEF IV (IFC-46436)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Gujarat
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 30, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
INDIA BUSINESS EXCELLENCE FUND IV G
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 55.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 20, 2024

Disclosed by Bank Apr 25, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC, the proposed investment is an equity investment of up to US$35 million, not exceeding 20% of total Commitments with up to US$20 million in co-investment envelope under the delegated authority, in India Business Excellence Fund IV (the “Master Fund” or “IBEF IV”), a trust constituted under the Indian Trusts Act 1882 and registered as a Category II Alternative Investment Fund (“AIF”) with the Securities and Exchange Board of India (“SEBI”) through India Business Excellence Fund IV G (“GIFT Fund”), a trust formed in Gujarat International Finance Tec-City, registered with the International Financial Services Centre Authority (“IFSCA”) under the SEBI AIF Regulations 2012, as a Category II AIF (together known as the “Fund”). The Master Fund is targeting ~US$588 million (INR 45,000 million) in commitments to invest in 10-15 companies in consumer, financial services, life sciences, and niche manufacturing sectors.    

The Master Fund will not invest in any higher risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage d) significant occupational health and safety risks. The Master Fund will also not invest in any coal-related activities, or any financial institution substantially exposed to high-risk sectors. Hence, the E&S risk of the proposed investment is medium, and the project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. IFC's applicable performance requirements for this project will be i) the Exclusion List; ii) the host country laws and regulations; and iii) the IFC Performance Standards.                                               

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Master Fund is seeking to raise ~US$588 million (INR 45,000 million) in aggregate capital commitments. IFC proposes an equity investment of up to US$35 million (capped at 20% of the aggregate capital commitments) in the Fund. A delegated authority co-investment envelope for an amount of up to US$20 million in potential co-investments in the Fund’s portfolio companies is also being proposed alongside the Fund commitment.    

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

 The Master Fund will be managed by MO Alternate Investment Advisors Private Limited (“Fund Manager” or “MOA”), a private limited company. The Master Fund’s sponsor is Motilal Oswal Financial Services Limited (“MOFSL”), (“Sponsor”), a public limited company incorporated in India. The Master Fund have engaged MOA to carry out investment management and administrative duties. The Fund Manager is led by Vishal Tulsyan and Raamdeo Agrawal.          

 The Master Fund is a trust constituted under the Indian Trusts Act 1882 and registered as a Category II AIF with SEBI. The GIFT Fund is a trust formed in Gujarat International Finance Tec-City, registered with the International Financial Services Centre Authority under the SEBI AIF Regulations 2012, as a Category II AIF.               

 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

MO Alternate Investment Advisors Pvt. Ltd.
Bharat Kedia
Chief Operating Officer

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works