PMS Bazaar recently organized a webinar titled “How to identify pre-IPO winners in Emerging sectors” which featured Mr. Sandeep Daga - MD & CIO, Mr. Vinay Khatu - President, and Mr. Kunal Jadhwani - Vice President from Nine Rivers Capital.

This blog covers the important points shared in this insightful webinar.

Key aspects covered in this webinar blog are

• Geopolitical Conflicts and Their Influence on Supply Chains
• Strategic Imperatives in Defense and Healthcare Sectors
• Infrastructure Development and Technological Advancements as Catalysts for Growth
• The Strategic Vision of the Aurum Rising India Fund (CAT 2-AIF)
• Strategic Special Situation Investments
• Consumption and Manufacturing as Key Drivers
• Global Supply Chain Realignment and India’s Strategic Advantage
• Investment Strategy of the Aurum Rising India Fund
• Selection Criteria for High-Growth Investments
• Key Sectors and Portfolio Companies

Summary: Mr. Sandeep Daga addressed key global economic shifts, highlighting geopolitical tensions, defense, healthcare, infrastructure, and AI-driven energy demands. He introduced the AUM Rising India Fund, targeting high-growth pre-IPO companies. Mr. Vinay Khatu discussed India’s rapid economic expansion, emphasizing manufacturing and government-driven incentives. Mr. Kunal Jadhwani detailed the fund’s investments across diverse sectors, including consumer goods, industrial manufacturing, specialized industries, and regional retail. The fund focuses on scalable businesses with strong cash flows and management, aiming for substantial investor returns.

The discussion delved into how geopolitical conflicts and macroeconomic shifts are shaping investment opportunities in India. The speakers highlighted key growth areas such as defense, healthcare, infrastructure, and AI-driven energy demands. A special focus was placed on the AUM Rising India Fund, which is designed to identify high-growth companies on the verge of listing, offering substantial returns to investors.

Mr. Sandeep Daga commenced his address by extending his sincere gratitude to PMS Bazar for the valuable opportunity to share his perspectives on the evolving global economic landscape and its implications for Indian businesses. He emphasized the profound transformations that had occurred in the past half-decade, particularly the seismic shifts triggered by the COVID-19 pandemic.

Geopolitical Conflicts and Their Influence on Supply Chains

Sandeep Daga opened the session by expressing his appreciation for PMS Bazaar, emphasizing the importance of understanding global market trends and their implications for Indian businesses. He reflected on the profound economic transformations over the past five years, particularly the disruptions caused by the COVID-19 pandemic. The discussion then transitioned to geopolitical tensions, with Daga citing the Russia-Ukraine war, Israel-Hamas conflict, and Iran’s intermittent involvement as critical factors disrupting global supply chains. He explained how these geopolitical events have further strained supply chains already weakened by the pandemic, forcing multinational corporations to rethink their sourcing strategies beyond the traditional “China plus one” model.

Strategic Imperatives in Defense and Healthcare Sectors

A key area of discussion was the defense sector, where Daga emphasized the pressing need for replenishing global defense inventories. Given historically low stockpiles, he noted that this has created a major investment opportunity for Indian defense manufacturers, positioning them to gain a stronger global foothold. Another emerging sector discussed was healthcare, particularly the need for expanded infrastructure and enhanced medical programs post-COVID-19. With rising demand for healthcare solutions worldwide, he noted that Indian companies could capitalize on this trend by innovating and scaling their operations.

Infrastructure Development and Technological Advancements as Catalysts for Growth

The conversation then shifted to infrastructure development, which was highlighted as a major catalyst for economic growth. Daga noted that government spending on infrastructure projects is unlocking tremendous opportunities for smaller companies involved in the sector. Additionally, he pointed out the impact of artificial intelligence (AI) on energy demand, particularly in the areas of data processing and data centers. The need for increased energy capacity—especially from renewable and nuclear sources—was identified as a key investment theme, creating lucrative opportunities for energy companies.

The Strategic Vision of the Aurum Rising India Fund (CAT 2-AIF)

The session also introduced the Aurum Rising India Fund, a Category 2 AIF focused on high-growth pre-IPO companies. Daga elaborated on the fund’s strategy, explaining that it aims to invest in companies that are expected to go public within 12 to 18 months. He shared that the fund has successfully completed its initial closing and targets a total corpus of ₹300 crore, with an additional green shoe option of ₹150 crore. The fund’s investor base primarily consists of ultra-high-net-worth individuals (UHNIs) and family offices.

Strategic Special Situation Investments

Elaborating further on India’s economic growth, Vinay Khatu highlighted the country’s rapid expansion and its implications for investment opportunities. He pointed out that India’s GDP, currently estimated at around $4 trillion, is projected to grow 2.5 times within the next decade. This economic boom, he stated, will open significant investment avenues across multiple sectors. Khatu also underscored India’s traditionally consumption-driven economy, predicting a substantial increase in consumer spending as disposable incomes rise.

Consumption and Manufacturing as Key Drivers

Another focal point was India’s manufacturing transformation. He noted that manufacturing had lagged behind nominal gross value added (GVA) growth for nearly a decade but is now seeing a resurgence. With the government’s push through Production Linked Incentive (PLI) schemes and sector-specific initiatives, the industry is expected to triple its economic contribution in the next ten years. Khatu stressed that India, which previously skipped the industrialization phase and moved straight from agriculture to services, is now experiencing a shift toward a stronger manufacturing base, which will drive long-term economic growth.

Global Supply Chain Realignment and India’s Strategic Advantage

A major factor in India’s evolving industrial landscape is the global supply chain realignment post-COVID-19. He emphasized that the “China plus one” strategy, which many companies have adopted to diversify manufacturing bases, presents India with a significant opportunity. Government policies, such as the PLI scheme and incentives for semiconductor and electronics manufacturing, are further accelerating this shift. He provided an example of mobile phone exports, which have surged in recent years, reducing India’s reliance on imports and strengthening its manufacturing sector.

Investment Strategy of the Aurum Rising India Fund

The discussion then turned toward the investment strategy of the Aurum Rising India Fund. Daga explained that the fund is focused on providing growth capital to emerging companies. He detailed its stage flexibility, which primarily targets pre-IPO investments but also considers select listed companies. The fund’s typical investment ticket size ranges from ₹15 to ₹30 crore, with an ideal range of ₹20 to ₹25 crore.

Selection Criteria for High-Growth Investments

The fund’s investment approach prioritizes companies with strong cash flow visibility, as these require less external capital and can generate substantial shareholder value. Daga noted that the fund strategically invests in companies that are often overlooked by venture capital (VC) and large private equity (PE) firms, which tend to favor tech-driven, high-growth businesses with larger funding needs.

Key Sectors and Portfolio Companies

Daga outlined the fund's allocation strategy, aiming for at least 50% in pre-IPO investments, up to 25% in special situations and growth, and up to 25% in SME board-listed companies. Check sizes would vary depending on the deal type, with a maximum of 30 crore rupees. He referenced the fund's prior experience with a dedicated SME fund, indicating a broad sector investment approach.

Kunal Jadhwani then provided insights into the fund’s investment portfolio, showcasing its diverse sectoral exposure. The fund has already invested in 11 companies, with 10 successfully listed. He highlighted notable consumer-facing businesses such as WFI (modular kitchen supplier), Chata Foods (contract manufacturer for frozen foods), and DK Enterprise (packaging supplier for FMCG brands).

Jadhwani also discussed investments in industrial manufacturing, including Amia Precision, a high-end machining company with 97% export sales, and Yes High Voltage, a bushing manufacturer for transformers. The fund has also backed Teo Engineering, which provides industrial services for the steel, power, cement, and minerals sectors.

The panel concluded with an engaging Q&A session, where the speakers addressed audience questions on pre-IPO investing, sectoral opportunities, and India’s economic trajectory.

For a deeper dive into the insights shared during this session, you can watch the full webinar recording via the link below.

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