Equity and Quasi-Equity Financing

We provide financial solutions to local businesses by becoming a shareholder in their company.

WHAT WE OFFER

FINANCIAL SOLUTIONS

Possibility of investing in your company as from Rs. 500,000 up to Rs. 25,000,000

FINANCIAL INSTRUMENTS

• Quasi Equity through Redeemable Preference Shares

• Equity financing through Ordinary Shares

• Debentures

HOW CAN I APPLY FOR FUNDING?

The application for an equity fund is conducted in four steps. Any entrepreneur who is looking for financing to kickstart or expand his/her business operations is welcome to contact us. The SME Equity Fund Ltd (SEF) team will evaluate eligibility of all projects before financing.

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  • Step 1 - Appraisal

    The entrepreneur makes an initial appointment with the SEF team, where he/she submits the application form, business plan, previous years’ financial statements and KYC documents, amongst others. After the meeting, the entrepreneur’s project is assessed and presented to the Investment Committee/ Board for consideration and decision.

  • Step 2 – Post Board Approval - Documentation

    For approved projects, an offer letter, draft Investment Agreement detailing the terms and conditions, and other relevant documents are sent to the applicant.

  • Step 3 – Signature of Investment Agreement

    Subject to the agreement of the applicant, a meeting is scheduled by the SEF team for signature of documents. Subsequently, formalities relating to subscription of shares and inscription of charges with concerned authorities.

  • Step 4 – Monitoring Pre-disbursement Conditions

    The Investee Company has to ensure that pre-disbursement conditions are met. The mechanisms involved in the disbursement of funds, which are carried out in tranches, are as per milestones agreed with the client.

  • Step 5 – Post Disbursement Conditions & Monitoring

    The Investee company is required to meet all conditions subsequent as per the Investment Agreement. The SEF team monitors the progress of the project through regular site visits and regular communication with the Directors. The companies are required to submit quarterly accounts amongst others and ensure that their financial obligations are honoured towards SME Equity Fund Ltd.