INVESTMENT PROCESS

A. ELIGIBILITY CRITERIA

As per the scheme document of AVVAY, the following categories would be eligible under the scheme:

i. Innovative ideas awarded in the National level innovation challenges such as Smart India Hackathon (Ministry of Education) or such other innovative drives – proposing products, processes and services for the welfare of the elderly;
ii. Start-ups already functioning in the elderly segment proposing to expand operations.

B. INVESTMENT LIMITS

Investment in any Portfolio Company shall not exceed Rs. 1,00,00,000/- (Rupees One Crore Only) by way of equity, convertible or other equity instruments and the maximum shareholding of the Scheme in any Portfolio Company shall not exceed 49% (forty-nine per cent) of the paid-up share capital of the said Portfolio Company.

1. Deal Generation

• An open notification shall be issued by Ministry for calling ideas/projects/start-ups working in the elder care segment in the month of March every year.


• An online portal (https://sage.dosje.gov.in/index.php) has been developed for giving details of the start-ups/idea at the level of NISD for easy uploading of the projects/proposals.

2. Selection Process

To be undertaken by Ministry of Social Justice and Empowerment

• An open notification shall be issued by Ministry for calling ideas/projects/start-ups working in the elder care segment in the month of March every year.


• A suitable online portal (https://sage.dosje.gov.in/index.php) has been developed for giving details of the start-ups/idea at the level of National Institute of Social Defence (NISD) for easy uploading of the projects/proposals.


• A Pro ject Appraisal Committee is formed in the NISD with experts with a mandate to call, evaluate and recommend start-ups/ companies for support.


• Also, a Project Approval Committee under the chairmanship of Secretary, Social Justice and Empowerment at the Ministry level along with other members viz.

o Joint Secretary (Admin.), MOSJE (Member)
o JS & FA, MOSJE (Member)
o Managing Director, IFCI Venture Capital Funds Limited (Member)
o Director, Sr. Citizens, MOSJE (Member Secretary)

has been formed to select and recommend applications for financial assistance.

To be undertaken by the Investment Manager

• Based on the recommendations of the Project Approval Committee, shortlisted projects would be subject to detailed due-diligence by the Investment Manager.


• Based on the detailed due-diligence and considering the business projections/ outlook and industry parameters, deal structuring will be finalised and approved by the Investment Committee (Final Stage) or any such other authority as may be delegated by the Board.


• Deal structuring shall include the following points:

• Valuation for investment;
• Amount of investment;
• Instrument of investment;
• Terms of investment (both commercials as well as other terms);
• Exit clauses etc.

3. Detailed Appraisal

Detailed Appraisal shall be based on the following parameters:

• Competencies of the entrepreneurs – in terms of financial/technical/managerial competencies.
• Company’s credentials – in terms of financial strength/past and future performance parameters, projections/cash flows.
• Venture/ Project and its product or service – whether the product chosen is new or already existing in the domestic market.
• Business Prospects – future performance parameters with respect to the business.
• Assessment of operational issues.
• Assessment of techno commercial issues.
• Assessment of market.
• Assessment of other issues like General business environment, trade barriers, tariff related issues, government policies and regulations, IPR’s, trademarks, patents, copyrights and etc.
• Risk & its mitigation measures will be evaluated in detail.
• Legal Aspects and KYC.
• Avenues for exit will be clearly evaluated.

4. Final Sanction and Disbursement

• The proposal prepared by the investment team of the Investment Manager shall be considered by the Investment Committee for sanction.
• After the sanction by the Investment Committee, Letter of Intent along with the terms and conditions of sanction shall be issued to the Entrepreneurs.
• The necessary legal documentations shall be prepared and executed by the investment team of the Investment Manager.
• After the completion of above process the disbursement shall be made as per the terms and conditions of the sanction.

5. Monitoring:

• Periodic MIS, visits, inspection shall be carried out by the official of the investment team of the Investment Manager.
• The officials of investment team of the Investment Manager may also become nominee directors on the board of these companies.They shall be covered under clause (b) of sub-regulation (1) of regulation 106N of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

6. Exits from Investments

Exits shall be envisaged by way of promoter buyback, subsequent round of investments and listing in stock exchange etc.