Jaipur-based merchant banker and stockbroker Holani Consultants has raised Rs 184 crore for its new SME-focused Rs 300 crore fund launched in late April this year. The Holani Group had ventured into the fund management and investment segment post approval from the Securities and Exchange Board of India (SEBI) for its Alternate Investment Fund early this year.
This enabled the company to operate as an equity fund house. The new fund, said Holani Group, also has a green shoe option to retain an additional Rs 100 crore.
Speaking on the capital raised, Ashok Holani, Director of Holani Consultants said, “With our sector-agnostic strategy, meticulous research and prudent risk management, we aim to create long-term value for our clients while fostering innovation, entrepreneurship and economic growth of India through our fund.”
The Holani Venture Capital Fund Category I AIF (Alternate Investment Fund) is managed and sponsored by Holani Capital Advisors LLP. The company said the new fund allows individuals, including high networth individuals, corporates, institutional investors, financial institutions, family offices, insurance companies, foreign investors, and other alternative investment funds to invest through the fund.
Holani Consultants provides IPO management, business valuation consultancy, financial management and advisory, bank financing, stock broking and other advisory services related to the securities market.
According to the company, it has supported in valuations of over 100 private placement transactions and handled SME IPOs on the BSE SME and NSE Emerge platforms.
The new fund is among the few venture funds in the country with the SME sector as their key focus area.
Currently, the MSME Ministry also runs a Rs 50,000-crore Self-Reliant India fund managed by the public lender State Bank of India’s (SBI) private equity arm SBICAP Ventures (SVL) for equity investment in SMEs.
In March this year, SIDBI, the principal financial institution for MSME development, had launched a new $120 million Avaana Sustainability Fund (ASF) fund for investment into early-stage startups and MSMEs leveraging technology-led innovation to spur climate solutions and sustainability in India.