Avendus PE Investment Advisors Pvt. Ltd, a subsidiary of financial services company Avendus Capital, on Monday launched its third private investment in public equity (PIPE) fund, called Avendus India Opportunities Fund III. The fund is expected to have a corpus of Rs.500 crore.
The company, in a statement, said there is huge scope in investing in listed entities as there are 3,000 regularly traded companies in India, of which more than 2,800 have a market capitalization of less than Rs.5,000 crore. Outside the top 200 companies, majority of the companies are under-researched, creating immense opportunity for a fund willing to undertake in-depth evaluation, it said.
The fund will focus on sectors which benefit from India’s rising discretionary spending, rapid urbanization and increasing rural prosperity, Avendus said. The fund will invest in 12-14 high conviction mid-cap stocks, taking equity stakes of around 5% for an investment horizon of two-three years.
“There is major scope to improve investor relations and corporate governance of mid-cap companies,” said Manoj Thakur, chief executive, Avendus PE Investment Advisors.
Source: Livemint