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StepTrade Share Services, an investment management company, recently obtained approval to set up its new India fund office in the Special Economic Zone (SEZ) at GIFT City, Gandhinagar.
The strategic move will pave the way for launching an approximately Rs 1,000 crore fund focused on the Indian market, specifically targeting the small and micro-cap segments.
Why focus on small and micro-cap companies?
The new India fund by StepTrade is designed to offer investors exposure to a broad spectrum of companies across various growth stages, with a particular emphasis on small and mid-cap entities. These investments are touted to offer diversification benefits and a chance to tap into the vibrant growth potential of these sectors.
What are the benefits for investors?
Foreign investors looking to engage with the Indian market will find the StepTrade India fund an attractive option due to its promise of tax-free returns and the elimination of currency fluctuation risks.
According to Kresha Gupta, Founder and Director of StepTrade, "Contributing to the growth of India is our foremost goal and launching the fund at GIFT City is a step towards that goal."
Chanakya Opportunities Fund I
StepTrade had launched the Chanakya Opportunities Fund I, a Category II Alternative Investment Fund focusing on the SME exchange. It started with a fund corpus of Rs 100 crore, supplemented by an additional Rs 100 crore through a green shoe option.
The company also introduced the StepTrade Revolution Fund, a Category III AIF, in September 2023, which allows investors to engage in high-growth SME and Microcap sectors through Qualified Institutional Buyer (QIB) and Anchor investments.
How does GIFT City enhance this venture?
The establishment of the India fund in GIFT City's SEZ framework offers significant advantages. It enables founders and promoters to leverage the city's advanced infrastructure and regulatory benefits, fostering easier access to capital and aiding in the expansion and success of SMEs, as outlined by StepTrade.