This India fund will have a special focus on the small and microcap segments.
Investment management company StepTrade Share Services has received Special Economic Zone (SEZ) approval to set up its India fund office at GIFT City, Gandhinagar. This will enable the company to launch an approximately Rs 1000 crore India-focused fund in the next six months after FME and scheme approval.
This India fund will have a special focus on the small and microcap segments. Investments in small and mid-cap funds can provide investors with diversification benefits and expose them to a broad range of companies across different stages of growth.
Foreign investors will be able to tap into the Indian markets via the StepTrade India fund. Investors will benefit from a tax-free return on investment without the risk of currency fluctuations, as per a company statement.
“Contributing to the growth of India is our foremost goal, and launching the fund at GIFT City is a step towards that goal,” said Kresha Gupta, Founder and Director, StepTrade Share Services Pvt. Ltd., which has its own AIF CAT I, II, and III and PMS as well.
The India Fund will enable founders and promoters to leverage the advantages offered by the SEZ framework and GIFT City's infrastructure. StepTrade Share Services also aims to facilitate capital access and foster investment in SMEs, which will contribute to their expansion and success.
StepTrade Share Services achieved success with their inaugural offering, Chanakya Opportunities Fund I, a Category II Alternative Investment Fund (AIF). This was StepTrade Share Services’ first SME-exchange-focused offering, with an initial fund corpus of Rs 100 crore and a green shoe option of an additional Rs 100 crore. The fund provides exit opportunities through primary markets as it intends to invest in companies that have the potential to get listed on SME exchanges with small-ticket IPOs.
In September 2023, StepTrade Share Services launched the StepTrade Revolution Fund, an open-ended CAT III AIF. This fund presents a distinctive opportunity for investors to engage in Qualified Institutional Buyer (QIB) and Anchor investments within the dynamic and high-growth SME and microcap sectors.