SKI Capital's AIF closes its first investment in SME

SKI Capital's alternative investment fund (AIF) on Wednesday announced it has closed its first and initial investment in a Small and medium-sized enterprise (SME).
In a release, it said the fund with a target corpus of Rs 600 would be focused on sustainable growth and societal impact. SKI is a SEBI-registered - Category 1 Merchant Banker with an experience of more than three decades in capital markets.

SKI has also successfully filed a draft red herring prospectus for two SME initial public offerings as the lead manager. SKI Capital, AIF, NSE, SEBI, Saket Seven Star Industries Limited is slated to be listed on the Emerge platform of NSE and Karma Ecotech Limited will be listed on BSE's SME platform, the release stated.

Earlier this year, SKI achieved registration from the SEBI for its AIF focused on the SME capital market.

"This first close allows us to further our commitment to the SME sector, which we believe plays a crucial role in both economic growth and societal improvement. The filing of two DRHPs also underscores our continued commitment to supporting small and medium-sized enterprises in their growth journey," said Manick Wadhwa, Managing Partner, SKI Capital.

He added, "The fund also has an active investment pipeline, with plans to engage in additional SME capital market opportunities in the near future."

In recent years, there has been a noticeable surge in SMEs opting to go public through IPOs. SME IPOs have emerged as a viable fundraising option for these companies, providing them with opportunities for growth, expansion, and more substantial market presence.

From January 2022 to August 2023, over 160 issues on the SME board have had an average listing day return of 25 per cent and the average return of SMEs listed in 2023 is around 80 per cent, according to the SKI Capital release.