SKG India Value Fund: Empowering SMEs with Targeted Asset Management

SKG Assets & Holdings, a prominent financial services firm, has unveiled the SKG India Value Fund, specifically designed for small and medium-sized enterprises (SMEs). This asset management fund is set to target early-stage companies showcasing growth potential, those with stock prices undervaluing their growth trajectory, businesses preparing for IPO listings that meet certain criteria, and enterprises with a first-mover advantage in niche markets.

Unlike traditional long-term investment strategies, the fund will maintain stocks of the listed companies for a projected period. The rationale behind this approach lies in the conviction that SMEs often excel in their respective niche markets, offering unique products and maintaining competitive edges in terms of quality, cost-effectiveness, performance, and client relationships.

Kush Gupta, Director of SKG Assets & Holdings Private Limited, expressed enthusiasm for the SKG India Value Fund's launch, emphasizing its significance in the rapidly evolving Indian financial landscape. He stated, "Our aim is to bridge the gap between investors who believe in India's economic positioning and high-growth SMEs, unlocking the true potential of these businesses. We have a deep understanding of identifying undervalued companies with credible promoters, and this fund is our way of helping investors become a part of the SME success story."

Notably, the company currently manages assets under management valued at Rs 475 crore, with their investment banking clients boasting a cumulative market capitalization exceeding Rs 20,000 crores.

According to data from BSE SME, the SME platform of BSE (Bombay Stock Exchange), a total of 459 SMEs have been listed on the platform since 2012, amassing a market capitalization of Rs 90,568 crore. These companies have collectively raised Rs 5,648 crore. Additionally, 180 firms have migrated from the SME index to the main board, and 279 companies are presently listed on the platform.

To secure a listing on the BSE SME platform, companies must meet specific criteria. Their pre-issue paid-up capital should not exceed Rs 25 crore, and they must possess net tangible assets of at least Rs 1.5 crore, along with a positive net worth. In terms of the company's track record, BSE SME guidelines stipulate that the company, partnership, proprietorship, LLP firm, or converted firm should have a combined track record of at least three years.