Chanakya Opportunities Fund, a new Rs 200 crore fund specialising in SME exchange and micro-cap companies, has delivered a return on investment, surpassing 45 per cent within just four months of its launch, the company said in a press statement.
As part of the Chanakya Fund Trust, founded by Kresha Gupta, this SEBI registered category II alternative investment fund has gained approval in March, and the actual fund was introduced in June.
Chanakya Opportunities Fund I, a sector-agnostic SME-focused fund, with an additional Rs 100 crore green shoe option, has significantly exceeded investor expectations. In the brief span since its launch, the fund's net asset value has surged from Rs 10 per unit to an impressive Rs 14.92 per unit.
The fund invests 51 per cent in unlisted SME companies and 24 per cent in listed SME companies. This gives the fund exposure to the growth potential of the SME sector, while also providing some stability in the listed market.
The success of the fund can be attributed to the investment in 13 listed companies of which 12 are in positive return. Another key strategy for the firm was to become an anchor investor with an investment of Rs 10 crore in Plaza Wires Ltd. The cable manufacturer was listed at a 40 per cent premium to the IPO price and is currently trading at a 120 per cent premium to IPO price.
“We see a huge opportunity in this segment especially as some of the recent IPOs have been subscribed to more than 100 times in the market,” Gupta added.
Chanakya Opportunities Fund is the first fund of SteptradeShare Services Pvt Ltd, which is the sponsor of Chanakya Fund Trust. It is a closed-ended scheme that invests in SMEs with ticket sizes ranging from Rs 2 crore to Rs 10 crore.
The firm added that it aims to raise capital from resident and non-resident Indians, high-net-worth individuals (HNIs), banks, accredited investors, corporates, and trusts.