Mumbai: Subrata Roy-owned Sahara Group is coming out with a mutual fund scheme to invest in equities and equity-linked instruments of power companies.
The objective of Sahara Power Fund would be to invest “in equities and equity-related securities of Companies engaged in the business of generation, transmission, distribution of power or in those companies engaged directly or indirectly in any activity associated with power sector”, said the draft document filed with the market regulator Sebi.
The launch of an open-ended Power Fund at this time assumes significance as many power sector companies are proposing extensive investments and the 11th Five-Year Plan (2007-12) has set a capacity addition target of about 78,000mw.
As per the proposed offer document, an individual can invest a minimum amount of Rs5,000 in Sahara Power Fund.
According to the draft document, SFCIL, headed by Sahara chief Subrata Roy, has not done well during 2006-07 and reported a decline in profit as well as in net worth.
According to Amfi, Sahara Mutual Fund has a total of Rs216 crore of assets under management.
The document says SIFCL skipped dividend for 2006-07 as profits dipped to Rs17.75 crore from Rs37.61 crore in the previous year and net worth declined to Rs669.37 crore from Rs703.95 crore.