Guiness Corporate Advisory Services has received SEBI approval to launch its maiden close ended SME Growth Fund of ₹100 crore with an option to retain excess subscription of up to ₹50 crore.

The fund with tenure of 7 years will have Morning Glory Capital Advisors LLP as investment manager.

The growth fund will invest in SMEs in both listed and unlisted companies, which has the potential to deliver 3 to 5 times return on investment in 5 to 7. It will limit the number of portfolio investments to 20-35 companies with a ticket size of ₹3-5 crore per investment.

The focus sectors will be agriculture and food, environment and energy, healthcare, pharma, education and logistics.

Investment committee

Investment committee consists of Nilesh Khare, with 20 years of experience in business consulting and equity research, Manish Bansal and Kamal Kothari, who have experience in investment banking and financial markets.

The scheme has already received initial investment commitment of ₹25 crore. Kothari, Managing Director, Guiness Corporate Advisory Services and Bansal are the sponsors of the fund.

Kothari said the company’s confidence of delivering return on investment comes from expertise in managing 40 SME IPOs in last two years as investment banker.

“India needs to develop SMEs to increase its GDP growth in the coming years to come. With increasing focus of the Government on Make in India, the growth in SMEs is going to be exponential,” he said.

Guiness Corporate Advisory has business interest in retail and institutional broking, portfolio management services, insurance and mutual fund product distribution.

It has also emerged as one of leading players in IPO services, which span from handholding the SME and listing them on exchange platform. The company has successfully completed 45 IPOs.

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