India’s UTI raising new fund

UTI Ventures, an 8-year-old Bangalore, India-based firm, is trying to raise its third venture fund with a target between $400 million and $450 million, according to the Business Standard. The firm raised about $400 million for its last fund, which closed in 2005.

UTI invests in infrastructure, retail and media. It has backed Vallabhdas Kanji, which sells food spices and has raised $13.5 million since 2006 and South Indian Bank, which raised an undisclosed amount in September 2007 and has since gone public.

The Business Standard reported that the fund will open by July and close within three to six months.

In one of the biggest exits by a venture capital firm in India, UTI Ventures made 50x its investment by selling a 35.5% stake in Excelsoft Technologies to D.E. Shaw.

So far this year, 21 Indian companies have raised $4.2 billion through IPOs, an increase of 62% over the same period last year, when 50 companies raised $2.6 billion, according to Dealogic. Reliance Power, which is developing power projects in India and went public earlier this year, accounts for most of the money raised thus far in India, with its $3 billion IPO.