IFCI to invest in former Maruti chief's venture

NEW DELHI (Reuters) - IFCI Ltd will invest 440 million rupees in two ventures including an automobile venture by a former chief of India's top carmaker Maruti Suzuki Ltd, the project financier said on Monday.

A 280-million-rupee investment in Jagdish Khattar's Carnation Auto, which will provide after-sales service to multiple automobile brands, is in exchange for optionally convertible debentures, IFCI said in a statement

Khattar was the managing director of Maruti till December 2007. The IFCI investment in Carnation is the second investment made through the 3.96 billion rupee India Automotive Component Manufacturers Private Fund, the firm said.

IFCI will also put in 160 million rupees in Luminous Teleinfra Ltd, a passive telecommunications infrastructure venture, and take a small stake, according to the statement.

Both investments will be through IFCI Venture Capital Funds Ltd, which is 95 percent owned by IFCI.