Asset Management

Varhad Investment Managers (VIM), the asset management division invests in the deserving MSMEs through equity as well as debt via our alternative investment vehicles to create wealth for the investors as well as owners of the investee companies.

Impact investment is one of the major areas of focus for VIM. The impact investment will help MSMEs scale up themselves qualitatively and quantitatively thus creating a better income and livelihood for themselves. It will also help in holistic development of economy by contribution to GDP, employment generation, poverty alleviation, affordable housing and better healthcare and educational facilities. VIM has associated itself with the Global Impact Investing Network (GIIN) to help MSMEs of India avail the maximum benefit of international networking. We have also forayed in social impact investment through our maiden fund, INR5bn DICCI SME Fund which is dedicated to invest in SC/ST entrepreneurs.

Currently held funds:

  • DICCI SME Fund
    DICCI SME Fund (DSF) of INR5bn is India’s first SEBI registered social impact investment fund that will invest in SC/ST owned SMEs. DSF will help SC/ST owned SMEs tap the opportunity of INR3.4tn over FY14-20 created by Public Procurement Policy, thus uplifting the bottom of pyramid by bringing them in entrepreneurial class. Though a socially responsible fund, we expect pre-tax IRR @ 25%p.a. (not guaranteed) as most of the deals would be proprietary deals done at right valuation. DSF plans to invest in 20-25 growth SMEs over the next 3years, which would grow at an exponential pace on account of PPP creating a good exit opportunity through secondary or strategic transactions.

We also are in process of launching fund for different sectors with focus on investing in both equity and debt. Few of the funds that are in the pipeline are:

  • Fund for Women Entrepreneurs: The fund will be dedicated to women entrepreneurs and it will invest in the companies run by them. It will help them expand their operations and also identify new business opportunities.
  • Fund for Cheap housing: The cheap housing fund will invest in developers and companies that build houses valued up to Rs. 25 lakh each. It might also invest in non-banking finance companies giving loans to people to buy such homes.