Pre-IPO – The fund would be investing into unlisted companies in the Pre-IPO stage. These would be those companies which are in the pipeline for IPO and would be listing in the coming months.
IPO through Anchor or QIB route – The fund due to its nature would be able to invest in IPOs as an Anchor investor or through the QIB route thereby increasing the yield on capital during times of over-subscription.
Investments post IPO – The Fund can also invest in select opportunities post IPO like:
Special Corporate events like QIP, Preferential allotment, FPO, Open Offer, Buy Back and Mergers.
Invest in IPO shares post listing if available at attractive valuations.
Post listing, the holding period of the company could vary depending on the view on the stock from the listing price and future earnings visibility. The fund would not be investing in IPOs only for listing gains.
Term: Up to 42 months from final close; option to extend by 1 year subject to approval of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund
Drawdown Period: 18 months from the initial closing date, with the discretion of the Investment Manager to extend the draw down period
Upfront Drawdown: 35% of the Commitment Amount or such other amount as may be decided by the Investment Manager
Drawdown Schedule: 30-35% every 2-3 months (subject to availability of investment avenues with the fund manager)