700% Gain In 3 Yrs: Small Cap Stock Below Rs 5 To Raise Up To Rs 250 Cr To Operate As An AIF

On Friday, the RBI-registered NBFC Advik Capital Limited said that it will submit an application for a license to operate as an Alternative Investment Fund Category II (AIF) in accordance with the SEBI Alternative Investment Fund Regulations. As the sponsor of the scheduled Alternative Investment Fund, Advik Capital has pledged to invest 10% of the fund's capital and is seeking to raise up to Rs 250 crores. This is the first step in Advik Capital's business expansion plan, which aims to complement and enhance the company's current business lines while broadening the portfolio and expanding into cutting-edge, futuristic ventures.

"The proposed category AIF shall investment in sunrise sectors including but not limited to Health Care, Infrastructure, Manufacturing amongst others. The investment will be in the form of equity, quasi equity, or structure debt. In the second phase, the Company intends to extend its investments footprints in the such operational but stressed assets-which can be revived with timely strategic interventions, ϐinancial support, thus creating value for all the stakeholders," said Advik Capital in a stock exchange filing.

In addition to strategically positioning the fund within the Performing Credit category, Advik Capital will use its experience in the publicly traded and unlisted equity capital markets. Advik Capital is in the final stages of hiring a chief investment officer and investment management team to ensure successful implementation. The company has also given orders to all intermediaries, merchant bankers, legal consultants, etc., to formalise the strategies, prepare all necessary documentation, and submit the application to SEBI for the necessary approvals.

Advik Capital's strategic business move to become an AIF will improve its standing in the financial industry by enabling it to provide customers with more structured solutions.

The Indian alternative investment fund (AIF) market has grown by an astounding 7x in the last five years. As of June 30, 2022, the SEBI website reports that there were Rs 69.4 lakhs million commitments raised. Of those, Rs 56.19 lakh million were raised in category II AIF, where Rs 22.04 lakh million of investments have been successfully completed. About 900 AIFs have been registered with SEBI.

Advik Capital Limited is a non-deposit-taking Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India and is primarily involved in the provision of financial loans and related services. The company is headquartered in New Delhi.

On Friday, the shares of Advik Capital closed on the BSE at Rs 2.88 apiece up by 0.35% from the previous close. The scrip reached a 52-week-high of Rs 5.01 on (09/03/2023) and a 52-week-low of Rs 1.90 on (14/08/2023). In the last 5 years, the stock has gained 119% and in the last 3 years, the stock has generated a multibagger return of 709%. In the last 1 year, the stock has fallen 14% and on a YTD basis, it has plummeted by 18% so far in 2023.