Advik Capital Limited an RBI registered NBFC has firmed up its plan to apply for license for Alternative Investment Fund Category – II (AIF) with SEBI Alternative Investment Fund Regulations.
Advik Capital is aiming to raise up to Rs 250 crores in its Alternative Investment Fund and as sponsor of the proposed AIF has earmarked/is committed to invest 10% of the corpus of the fund. This initiate part of Advik Capital’s business expansion strategy with the objective of broad-basing the portfolio, and diversifying into futuristic new edge businesses, complimenting and supplementing the existing business lines of the Company. The proposed category AIF shall investment in sunrise sectors including but not limited to Health Care, Infrastructure, Manufacturing amongst others. The investment will be in the form of equity, quasi equity, or structure debt. In the second phase, the Company intends to extend its investments footprints in the such operational but stressed assets-which can be revived with timely strategic interventions, Financial support, thus creating value for all the stakeholders. Advik Capital will leverage its experience in the equity capital markets in the listed and unlisted space as well as has to plan strategically positioned the fund within the Performing Credit space.
Advik Capital has mandated the all the intermediaries, Merchant Bankers and Legal Consultant etc. and for formalize the strategies, preparation of all the documentation and submission of the application with SEBI for necessary approvals, and is in the final process of recruiting the Chief Investment Officer and investment management team for efficient execution.
The strategic business decision of Advik Capital to establish an AIF will further strengthen its position in the financial market by way of offering more structured products to its customers. There is an incredible 7 times growth in the past 5 years in Indian AIF industry (alternative investment funds) which is standing at Rs 69.4 lakhs millions of commitments raised as on 30th June 2022 (as per SEBI website) and out of which Rs 56.19 lakhs millions of commitments were raised in category II AIF of which so far Rs 22.04 lakhs millions of investments were successfully completed. There are approximately 900 AIF registered with SEBI.
Advik Capital Limited, headquartered at New Delhi is engaged primarily in the business of providing financial loans and in providing ancillary services and is one of the emerging non-deposits taking Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India. Company’s wholly owned subsidiary M/s AdvikcaFinvest Limited is engaged in the business of making investments in Capital Markets Instruments in India and have plans to eventually make investment in abroad as well. The Company is a listed onBSE (Scrip Code: 539773).