Capital infusion

Capital infusion

Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. In the context of venture capital, it can also refer to funds received from a venture capitalist to either get the firm started or to save it from failing due to lack of cash.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Capital Infusion

1. Within a firm, the provision of funds to a relatively unsuccessful division from the profits of another division. Management may infuse a division with capital if it believes that it will eventually become profitable.

2. Funds received from a venture capital firm. Capital infusion may help a start-up survive the first few months or years before it becomes profitable, or it may help a failing business maintain its operations as it restructures or reforms.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Global Banking News-September 4, 2019--Punjab National Bank board plans capital infusion of INR180bn this week
M2 EQUITYBITES-September 4, 2019--Punjab National Bank board plans capital infusion of INR180bn this week
BANKING AND CREDIT NEWS-September 4, 2019--Punjab National Bank board plans capital infusion of INR180bn this week
"The affirmation of PNB's ratings with a positive outlook reflects our view that the bank's BCA will likely improve after the capital infusion from the government, and that its financial metrics will gradually improve," it said in a statement.
Poe explained that the consortium has 90 days to comply with its post-qualification requirement, including capital infusion into Mislatel, the holder of the congressional franchise.
With this round, the overall capital infusion into state-run banks during FY15-FY19 stands at Rs 2.56 trillion.
The Central Bank of the UAE (CBUAE) said last week that it will support Invest Bank with all the available liquidity facilities while the bank is attempting to get fresh capital infusion.
In a disclosure to the Philippine Stock Exchange (PSE), China Bank owned by businessman Henry Sy said its board of directors approved an additional capital infusion of P40 million in Manulife China Bank Life Assurance Corp.
Under this major restructuring programme the government will make a capital infusion of Rs 65 billion to the Water Board, Rs 100 billion to the Ceylon Petroleum Corp, US Dollar 125 million to Sri Lankan and US Dollar 25 million to Mihin Lanka in the year 2015 by way of Treasury bonds.
In return for the capital infusion, 3TS Capital Partners has obtained a minority stake in Zoot.
KALANITHI Maran- led low- cost carrier SpiceJet is in talks with overseas investors for a capital infusion of around ` 1,200 crore which it desperately needs to clean up its books.

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