16/02/2026
Opportunity to invest in Chanakya Opportunities Fund II - a Category II Alternative Investment Fund (AIF) designed to capture India’s Pre-IPO and Microcap growth story.
It builds on the proven success of Fund I (~32.85% IRR) and leverages India’s structural tailwinds—manufacturing push, MSME credit boom, energy transition, and China+1 diversification. A brief summary of the performance is presented here.
Market Opportunity
India is on track to become a $5.1T economy by 2028, the world’s 3rd largest. There is a $600B growth capital gap, with only ~10% of companies having accessed private investment. Microcaps are undergoing structural transformation: 245 IPOs since 2021, adding ₹7.3L Cr market cap.
NSE Microcap 250 has delivered 2–2.5x returns vs Nifty 50 over 5+ year cycles.
IPO momentum: ~70% of microcap IPOs delivered listing gains, average premium 33.4%.
Investment Approach
Focused on Pre-IPO sweet spot where risk inverts and returns multiply.
Captures three value inflection points:
- Pre-IPO entry at private valuations.
- IPO listing premium from liquidity and governance visibility.
- Post-listing re-rating driven by earnings ex*****on.
Portfolio construction:
~ 40% Pre-IPO opportunities (listing in 6–18 months).
~ 40% late-stage growth (listing in 18–36 months).
~ 20% IPO/QIB participation for liquidity and upside.
Differentiation & Edge
* Proven track record: Fund I delivered strong returns across manufacturing, infrastructure, and energy.
* Superior deal access: Early entry into high-growth companies through strong sector relationships.
* Rigorous screening: Multi-stage diligence (quantitative filters, management deep dives, governance checks).
* Risk mitigation: Promoter buy-back, anti-dilution terms, staged capital deployment.
* Alignment of interest: Promoter capital invested alongside LPs (100% skin in the game).
Team Strength
Supported by a strong research and advisory team with sectoral expertise in manufacturing, energy, consumption, and infrastructure.
Why Invest Now
* Valuation reset: Microcaps corrected 20–25% from peak, trading below median P/E.
* IPO pipeline: 250+ companies expected to list in next 18–24 months.
* Institutional awakening: Mutual funds and DIIs increasing microcap allocations.
* Structural tailwinds: Government push (PLI, MSME credit, Atmanirbhar Bharat) and global supply chain diversification.
"Chanakya Opportunities Fund II offers investors a disciplined, risk-aware gateway into India’s Pre-IPO and Microcap growth story—capturing value ahead of price discovery, riding IPO premiums, and benefiting from post-listing re-ratings. With proven ex*****on, strong governance, and full promoter alignment, it is positioned to deliver superior risk-adjusted returns in India’s fastest-growing segments"