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Holani Venture Capital Fund Achieves Record 50 Percent Growth in Just 6 Months, Outpaces Market Indices

Jaipur (Rajasthan) [India], December 17: Holani Venture Capital Fund reports a notable Net Asset Value (NAV) of Rs.157.62 per unit on 30th November 2024, which is underscoring its robust investment strategy and commitment to value creation. This substantial growth not only reflects their well-calibrated investment strategies but also signifies their unwavering dedication to delivering sustainable returns and long-term growth for their investors.

Holani Venture Capital Fund, a Category I Alternative Investment Fund (AIF) with an initial corpus of ₹ 300 crore and an optional extension of ₹ 100, actively invests in SMEs. Over the past 6 months, the fund has diversified its portfolio through anchor investments, early-stage investments in unlisted companies, and significant participation in IPOs, allowing it to build a balanced portfolio to the evolving Indian market. Focusing majorly on the vibrant SME Initial Public Offering (IPO) market in India, Holani Venture Capital Fund notes the increasing trend of SMEs going public, driven by the growth potential and investment opportunities these companies present.

The market benchmark Nifty50 closed trading session at 24,141.95 on July 01, 2024, the month HVCF commenced operations of its AIF. On Dec 06, 2024, Nifty 50 closed trading day at 24,677.80 levels. This translates in to a total gain of 2.22% for the entire time-period this venture fund exists. For the same time-period, the benchmark representing top 100 listed companies from Medium Enterprises – Nifty Midcap 100 – gave a return of 4.28% and that for small enterprises universe – Nifty Smallcap 100 – has given a return of 4.83%.

Key factors behind growth of the Fund

To build and sustain investor trust, the Fund had its clear focus on transparent communication and investor-centric strategies. This emphasis on keeping the stakeholders informed and engaged amplified the value for stakeholders. For the investors, beyond enhanced financial returns, the HVCF growth meant resilience and adaptability of the investment approach.

Strategic Asset Allocation has been a key factor in the Fund’s success. The well-diversified portfolio helped it capitalise on high-growth opportunities. To maximise returns, nearly 52% of the Fund allocation was in the Heating, Ventilation and Air-Conditioning (HVAC) sector, currently riding rapid growth fuelled by urbanisation and mounting demand for energy-efficient solutions.

Another significant game-changer for HVCF was its market positioning, meticulous analysis and timely decision-making. This strategy was critical to help the Fund judiciously navigate high market fluctuations to maximise returns on investment windows. Renewable energy, technology, manufacturing and logistics were key components of the HVCF portfolio, propelling it to push sustainable development and innovation.

Future Strategy and Outlook

Looking forward, Holani Venture capital Fund is preparing to stay ahead of changing market trends and take advantage of new opportunities. The broad plans include expanding into Growing Markets which exhibit strong potential for growth, Sustainability and ESG Focus to keep up with global trends and meet the investor’s expectations and using Technology to improve the decision-making and boosting the performance of the investments.

Asserting the exceptional performance, Ashok Holani says “The strong NAV performance is a stepping stone toward our continued journey of growth, innovation, and exceptional value delivery. We are confident that our proven strategy and experienced team will keep Holani Venture Capital Fund at the forefront of the industry, navigating challenges and seizing opportunities for the benefit of our investors.”

Disclaimer

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

 

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