SIDBI Venture Capital Limited
Engagement of Chartered Accountant / Legal / Consultancy firm
for setting up of SIDBI Growth Fund

  1. Introduction
    SIDBI Venture Capital Limited (SVCL), a wholly owned subsidiary of Small Industries Development Bank of India, proposes to set up “SIDBI Growth Fund”(SGF), as a close ended general Venture Capital Fund.  SGF will have an initial corpus of Rs.100 crore which would be subsequently enhanced to Rs.500 crore for providing Venture Capital (VC) assistance to Indian SMEs in all industry segments.  SVCL has approached SIDBI to contribute a sum of Rs.100 crore to the initial corpus of the Fund.  SVCL proposes to engage the services of reputed Chartered Accountant / Legal / Consultancy firms hereinafter refered to as ‘Advisors’ to assist and advise in structuring the VC Fund, preparation of documents, completing the registration with the regulator and other related work.

  2. Scope of work of Advisors
    The scope of work of Advisor includes :
    • Advising, preparation and finalising the following documents:
      • Private Placement Memorandum (PPM)
      • Trust Deed
      • Investment Management Agreement
      • Contribution Agreement for investment by investors
    • Registration of Trust Deed and obtaining SEBI Registration
    • Advising on additional safeguards that are required to be taken for protecting interest of SIDBI / SVCL / the fund.
    • Advising on additional safeguards that are required to be taken from tax and regulatory framework.
    • Any other issue necessary and incidental to the assignment.

  3. Eligibility for being Advisor
    Chartered Accountant / legal / consultancy firms of repute with proven track record and having previous experience of structuring of atleast 2 VC funds (preferably domestic funds) each with a corpus of atleast Rs.50 crore each in the last 4 years.  The scope of such assignments done should have included advising on the fund structure and design, drafting and finalising the following documents:
    • Private Placement Memorandum (PPM)
    • Trust Deed
    • Investment Management Agreement
    • Contribution Agreement for investment by fund contributors.

  4. Submission of Bids
    Chartered Accountant / legal / consultancy firms satisfying the eligbility criteria are invited to submit bids for selection as Advisors to -

    Chief Executive Officer
    SIDBI Venture Capital Ltd
    Unit Nos.105-107
    10th Floor
    Jolly Maker Chambers II
    Nariman Point
    Mumbai - 400 021

    SVCL reserves the right to accept or reject any or all bids without assigning any reasons thereof.  The bids shall consist of two parts viz. technical bid and financial bid.  Technical and financial bids shall be submitted in separate sealed envelopes superscribed as “Technical bid (or) Financial bid (as may be applicable) for Advisors of SIDBI Growth Fund”.  The technical bid shall not contain any details of the financial bid.  

    Contents of the technical bid
    The technical bid should contain the following information:
    a.       Full particulars of the constitution, ownership and main business activities of the prospective Advisor.
    b.      The bio-data of principal partners of the firm.
    c.       Details of previous experience in respect of structuring venture capital funds.  This should contain details of name(s) of VC fund(s), fund corpus, VC fund sponsor(s), scope of work, legal documents prepared, whether the VC fund was registered with SEBI etc.
    d.      Additional work done in respect of domestic VC funds such as due diligence of VC investment proposals, taxation work relating to the VC funds, statutary / internal audit of VC funds etc.
    e.       Details of pending litigation against the firm which could affect the performance of bidder as also details of any past conviction and pending litigation against partners / directors etc., and any areas of possible conflicts of interest.
    f.        Details of team who will be handling the proposed work, their status in the organisation, their qualification and experience. 
    g.       An approach note on the design and structure of the envisaged fund.
    h.       A realistic time schedule for completing the above assignment with complete break up of activities to be undertaken.

    Contents of the financial bid
    The fee quoted shall be given under the heads (i) professional fee, (ii) out of pocket expenses, (iii) taxes, if any and (iv) other expenses.  The bid should be unconditional. All the information sought above, and any other additional relevant information considered necessary by the bidder, should be sent in 2 copies to the under mentioned officer as part of the bid.  Quotations not fulfilling any or all of the conditions prescribed or which are incomplete are liable to be rejected. 

  5. Last Date
    The last date for submissions shall be as of close of business hours (5.30 p.m.) of March 19, 2004.  No consideration will be given to a quotation received after the time stipulated above and no extension of time will be permitted for submission of quotation.

    Canvassing in any form in connection with the response to the bid is strictly prohibited and will disqualify the bidder.  The decision of SVCL in this regard is final and binding on all Vendors. 

    Based on the capability and competency of the bidder and the suitability of their approach to SVCL’s requirements, the eligible bidders will be identified.  The financial bids of only such bidders will be opened. 

  6. Clarifications
    If any further clarification is needed about the assignment, the under-mentioned officer may be contacted.

    Shri R. Rewari

    Chief Executive Officer
    SIDBI Venture Capital Limited
    Unit Nos.105-107
    10th Floor
    Jolly Maker Chambers II
    Nariman Point
    Mumbai 400 021
    Tel No.022 - 2285 1786
    Fax No.022 - 2204 3078
    E-mail:  rewari@sidbiventure.co.in

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