OREANDA-NEWS. Red Ribbon Asset Management Plc ("Red Ribbon" or "the Company") an Impact Investment company that incubates scalable projects in India by exporting established products, services and technology from the UK to India, provides an update on corporate matters including acquisition of a Bombay Stock Exchange listed investment company through Red Ribbon Advisory Services Private Limited ("RRASPL"), a group company in India. The target acquisition will provide a distribution platform for RRASPL to raise funds for investing in early and growth stage businesses including Red Ribbon incubated businesses.   

KEY POINTS

·    Indian economy has developed a vibrant eco system for early stage ventures with potential for significant growth multiples;

·    Consideration to acquire Bombay Stock Exchange ("BSE") listed investment company;

·    This investment company would be one of the first listed investment companies in India investing in the early stage and growth ventures sector;

·    RRASPL has been developing a network of distributors across India who will distribute the Preferential Offer and Follow on Public Offer made by the Investment Company.

·    Focussed on raising significant domestic and global institutional capital;

·    A Board consisting of senior experts on investing in India is being formed;

·    Strong interest to participate from leading fund distribution houses in London and global financial centres such as Zurich, Dubai, Singapore and Hong Kong

·    Target company identified and will be renamed as Red Ribbon Impact Investments Limited ("RRII")

Corporate Strategy

Founded in April 2007, Red Ribbon Asset Management Plc is an Impact Investment company that incubates scalable projects in India by exporting established products, services and technology from the UK to India, creating tremendous opportunities for investors interested in projects that deliver both income and capital growth.

Each project complies with our stringent selection process and is managed by a CEO with a proven track record in the sector, and run to the same standard as that of a UK Plc, offering a secure platform for investors to invest in India.

Red Ribbon's Eco Hotels (www.theeco.com), the world's first carbon neutral hotel brand aims to exploit the severe shortage of budget hotels.  To support the rapid rollout of the Eco Hotels and to capitalise on the large construction market, Red Ribbon is setting up Modulex (www.modulex.in), India's first and the World's largest full fit out steel modular buildings factory. Eco Hotels and Modulex are both powered by solar and wind energy company Armaec (www.armaecenergy.com), completing a horizontally integrated group in property, offsite construction and renewable energy.

RRASPL has been developing a network of distributors across India who are currently distributing mutual funds and have expressed strong interest to introduce venture related products to their client base. Primary market research has shown that a growing number of investors in Tier II and Tier III cities in India are aware of venture investments but not having access to a suitable regulated product to invest in. According to Indian regulations, a company making investments in other companies is considered a Non-Banking Finance Company ("NBFC"). The acquisition target is a non-depositary NBFC with relevant licenses from the Reserve Bank of India.

On completion of the takeover, the investment company will make a Preferential Offer (as per BSE rules) to raise up to ?5 million. This will be followed by a Follow on Public Offer to raise up to 20 million pounds from domestic and international institutional investors and the Indian retail market.

The investment strategy will be as follows:

·     A portfolio of early stage pre-revenue and post revenue ventures

·     These ventures have the potential to be leaders in their sector

·     Have experienced and dynamic management team with proven track record

·     Have the potential to grow top line at 30%+ CAGR for 4-5 years

·     Have a scalable model and a clear long term vision for growth

·     Significant component of investment is in hard assets such as land and building

·     Are open to good corporate governance and financial discipline

·     Delivers measurable social and environmental Impact

Corporate Update

RRASPL is being developed as the distribution arm of Red Ribbon in India. Acquiring a listed investment company gives it the ability to offer a regulated product investing in early stage ventures to its growing distribution network across India. 

Furthermore, the ability to carry out financial promotions to all categories of investors including retail will help drive the Red Ribbon brand and unlock value in the incubation projects and take the Red Ribbon story to new audiences. A further announcement on the acquisition will be made in due course.

"The proposed acquisition is the natural progression for us to expand our distribution capability and offer to an increasing number of investors the opportunity to invest in early stage ventures through a regulated product" said Aditya Kanoria, CEO of Red Ribbon Advisory Services Private Limited.

"Indian economy has a growing and vibrant start up eco system with many businesses offering significant growth multiples and this acquisition will make us a leading brand in the venture space in the Indian market as a listed investor" said Suchit Punnose, Founder and CEO of Red Ribbon Asset Management Plc