Asset management fund for SMEs: Financial services firm SKG Assets & Holdings, on Friday, announced the launch of its SKG India Value Fund focused on small and medium-sized enterprises. The fund will focus on early-stage companies with growth potential, stock prices undervaluing their growth, companies listing for IPO that meet their criteria, and companies with first-mover advantage in niche markets.
The fund will hold the stocks of the listed companies during the projected period, rather than long-term investment. “This is based on the belief that SMEs often excel in their niche markets, producing unique products and maintaining competitive advantages in quality, cost-effectiveness, performance, and client relationships,” the company said.
Kush Gupta, Director of SKG Assets & Holdings Private Limited, said, “We are excited to introduce the SKG India Value Fund at a time when the Indian financial landscape is evolving rapidly. Our aim is to bridge the gap between investors who believe in India’s economic positioning and high-growth SMEs, unlocking the true potential of these businesses. We have a deep understanding of identifying undervalued companies with credible promoters, and this fund is our way of helping investors become a part of the SME success story.”
The company manages assets under management worth Rs 475 crore while the cumulative market cap of their investment banking clients exceeds Rs 20,000 crores.
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According to the data from BSE SME, the SME platform of BSE, 459 SMEs have been listed on the platform so far since 2012 with a market cap of Rs 90,568 crore, while the total money raised by these companies is Rs 5,648 crore. Till now, 180 companies have migrated from the SME index to the main board, while 279 companies are currently listed on the platform.
To get listed on the BSE SME platform, the pre-issue paid-up capital of the company should not be more than Rs 25 crore and net tangible assets of a minimum of Rs 1.5 crore along with a positive net worth. In terms of the company’s track record, according to the BSE SME guidelines, the company or the partnership/proprietorship/LLP Firm or the firm, which is converted into the company, should have a combined track record of at least three years.