Mumbai-based IndiaNivesh Renaissance Fund (INRF) is the Indi’s first turnaround situations fund. It has now begun to deploy its capital into small companies which are surrounded by the initial signs of improvement in private investments this year. The fund is managed by IndiaNivesh First Bridge Fund Managers and it invested Rs68 crore in two different small companies. They are Vadodara based Sebacic India and Pune-based Autoline Industries. The main aim of this investment is to meet the finance working capital needs. IndiaNivesh-First Capital closed its first tranche of Rs900 crore fund in the month of November.
Some of the factors that are involved in the working capital needs are the procurement of raw material, costs related to routine operations, and payment of wage bills. K K Rathi the managing director of IndiaNivesh First Bridge Fund Managers said that “Our theme of investment is to make an investment into small and medium companies which are in the turnaround situations. He also said that the companies are fit for the bill. Autoline is a listed auto-ancillary company which involved in manufacturing sheet metal components, assemblies and sub-assemblies, parking brakes, foot control modules, cab stay and cab tilt, hinges, tubular structures, fabrications, exhaust systems, for large OEMs in the automobile sector. Sebacic India company manufactures and exports sebacic acid. It is fully adaptable with Indian EPA laws and REACH (Registration, Evaluation, and Authorization of Chemicals), the EU regulatory system.
Many small and medium companies have been struggling a lot to escalate funds after a series of defaults late August by IL&FS processed a liquidity squeeze, increasing the cost of funds in the broader economy. Now the companies with cash-starved and seeking a turnaround have a lifeline in IndiaNivesh-First Bridge Capital Manager. The fund was introduced a few months ago and it is capital support for firms that critically require working capital for survival. It will own appreciable minority stakes in SMEs by saturating capital. The CIO of IndiaNivesh First Bridge Fund Managers, Sridhar Ramachandran said that the team is looking to deploy the money in SMEs that are facing problems due to business underperformance or financial stress. IndiaNivesh Renaissance Fund is chaired by GN Bajpai who is the former Securities & Exchange Board of India.