SME (Small and Medium sized Enterprise) companies also known as a start-up, in the unorganised sector will receive about 51% of the corpus in Chanakya Opportunities Fund I, a Sebi-registered Category II Alternative Investment Fund. These start-ups are in the manufacturing, consumer goods, and technology sectors and are expected to be profitable SME businesses with high potential.
A private equity growth and expansion fund is run by Chanakya Fund Trust and is called Chanakya Opportunities Fund I. India is where the fund’s investments are made; it is based in Ahmedabad. Approximately 25 companies are expected to receive investments from the fund ranging from 2 to 10 crores of rupees.
AIF falling under this classification include debt funds or private equity funds that are not given any special incentives or breaks by the GOI or any regulator. AIF Category II registration is available for a variety of funds, including real estate funds, private equity funds (PE funds), funds for distressed assets, etc.
Kresha Gupta, a 24-year-old Chartered Accountant (CA) from Ahmedabad, has established herself as one of the nation’s youngest female investors by establishing a fund that focuses on start-ups and small- and medium-sized enterprises (SMEs).
The Securities and Exchange Board of India (Sebi) has approved Chanakya Opportunities Fund I as a Category II Alternative Investment Fund. The fund recently announced the creation of a 100-crore sector-neutral SME and start-up fund with an additional 100 crore green shoe option.
The fund is a component of the Chanakya Fund Trust, which was granted permission to create a Cat 2 AIF by the capital markets regulator last month.
“For investors in the Indian markets, it is our mission to develop premium investment solutions at affordable prices. Under this aegis, we will create and release goods,” Gupta added.
We are launching with Chanakya Opportunities Fund I. Our goal for the first year is to raise 100 crore. We will take contributions for this closed-ended fund for a period of five years beginning with the first close, with a maximum of two one-year extensions allowed, she continued.
The fund will make investments in successful SMEs with promising prospects in the unorganised areas. A little over 51% of the corpus will be allocated to start-up SME businesses in the manufacturing, consumer goods, and technology sectors.
As the fund plans to invest in businesses with the potential to list on SME exchanges with small ticket-sized public issues, it will offer exit opportunities through primary markets.
With a ticket size ranging from 2 crore to 10 crore per firm, the Chanakya Opportunities Fund I is a closed-ended programme that intends to invest in about 25–30 companies.
Investors with a time horizon longer than a year may want to consider investing in the plan even though the fund will use a rigorous filtration and due diligence procedure to pick the finest investment ideas.
“Chanakya Opportunities Fund I is our first offering. We are planning to raise ₹100 crore in the first year. This is a close-ended fund, and we will be accepting subscriptions for the tenure of five years from the first close with a maximum of two extensions of one year each,” she added.
The fund will make investments in successful SMEs with promising prospects in the unorganised areas. A little over 51% of the corpus will be allocated to start-up SME businesses in the manufacturing, consumer goods, and technology sectors.
As the fund plans to invest in businesses with the potential to list on SME exchanges with small ticket-sized public issues, it will offer exit opportunities through primary markets.
With a ticket size ranging from 2 crore to 10 crore per firm, the Chanakya Opportunities Fund I is a closed-ended programme that intends to invest in about 25–30 companies.
Investors with a time horizon longer than a year may want to consider investing in the plan even though the fund will use a rigorous filtration and due diligence procedure to pick the finest investment ideas.
