The decision of the NBFC firm to establish an AIF will further strengthen its position in the financial market by way of offering more structured products to its customers.
Stock Market News: Advik Capital Limited, which is primarily in the business of providing financial loans, has firmed up its plan to apply for a licence for Alternative Investment Fund Category – II (AIF) with SEBI Alternative Investment Fund Regulations. It has informed the BSE that it aims to raise up to Rs 250 crores in its Alternative Investment Fund.
“Advik Capital is aiming to raise up to Rs 250 crores in its Alternative Investment Fund and as a sponsor of the proposed AIF has earmarked/is committed to investing 10% of the corpus of the fund,” it said in an exchange filing.
There has been an incredible seven times growth in the past 5 years in the Indian AIF industry (alternative investment funds) which is standing at Rs 69.4 lakhs million of commitments raised as of June 30 2022 (as per SEBI website) and out of which Rs 56.19 lakhs millions of commitments were raised in category II AIF of which so far Rs 22.04 lakhs millions of investments were successfully completed. There are approximately 900 AIFs registered with SEBI.
The decision of the NBFC firm to establish an AIF will further strengthen its position in the financial market by way of offering more structured products to its customers.
Delhi-headquartered Advik Capital Limited is engaged primarily in the business of providing financial loans. The small-cap stock is available for trade on BSE only. It ended on Friday with a trade volume of 25.10 lakh. Its market cap is Rs 123.31 crore.
What is Alternative Investment Fund Category – II (AIF)?
Alternative Investment Fund or AIF refers to an investment which differs from conventional investment avenues such as stocks, debt securities, etc. AIFs invest in venture capital, private equity, hedge funds, managed futures, etc. In simpler terms, an AIF
Category II funds invest in unlisted companies having sound business models by raising funds from HNIs and FPIs through private equity, debt funds, etc. They can be private equity funds (PE funds), debt funds, etc.