GVFL Exits Scicom Technologies

 A software services provider of oil and natural gas industry, a statement from the Ahmedabad-based fund said. This is GVFL's 46th exit of its 58 investments so far.GVFL, formerly known as Gujarat Venture Finance Ltd, had invested Rs 15 million ($333,000) in the Noida-based company in 2000. It has has made 20 per cent IRR from this divestment. According to sources, GVFL has sold its stake back to the management.

 The company currently has 400 engineers, and has a turnover of $12 million.Scicom was founded in 1996, as a joint-venture between IIS Infotech Ltd. and XOX Corp, US, to provide services in the area of modeling and simulation application software development and consulting to companies operating in the niche market segment of scientific and engineering sector. At the time of inception, it was known as IIS-XOX Pvt. Ltd. Scicom has executed projects for leading companies like Schlumberger Ltd, Haliburton, and Siemens.

The backers of the company include Saurabh Srivastava and Mohit Goel, the founders of IIS Infotech which was later sold to .Has GVFL exited Scicom at a wrong time? The IRR of 20 per cent is nothing to write home about since GVFL has entered the company at a very early stage. Why not wait till a strategic sale or an IPO?