The close-ended Category III AIF aims to unlock the growth potential of emerging businesses by providing institutional and pre-IPO investment opportunities. The fund follows the success of StepTrade’s first Revolution Fund, which has delivered over 40% returns since its inception in May 2024.
Why SMEs and Microcaps?
SME and microcap markets have witnessed significant institutional interest, driven by:
- Impressive Market Performance: The S&P BSE SME IPO Index has delivered a 59% CAGR over the past decade, outpacing the S&P BSE IPO Index (19% CAGR).
- Strong Institutional Backing: Global firms like Morgan Stanley, Bank of America (BoA), and HDFC Bank have entered the SME and microcap space, investing in Oriana Power, Chavda Infra, and Hi-Green Carbon.
- Soaring IPO Demand: Recent SME IPOs have been oversubscribed by over 100 times, reflecting growing investor appetite.
- Mainboard Migration: Over 40% of SME companies have successfully transitioned to the mainboard, signalling strong growth potential.
Key Features of SRF-II
- Focus on High-Growth SMEs & Microcaps
- Anchor & QIB Investment Opportunities
- Pre-IPO Access for Investors
- Three-Year Lock-in Period
- 20% Initial Drawdown
- Close-ended AIF Structure
StepTrade’s Vision for SME & Microcap Growth
Commenting on the launch, CA Kresha Gupta, Founder & Director of StepTrade Share Services, said, “The next generation of market leaders is being built today. With our ₹500 crore AIF, we are committed to identifying and propelling high-potential microcap and small-cap companies toward their true potential.”
With its latest fund, StepTrade aims to provide investors with a unique opportunity to capitalize on India's rapidly growing SME and microcap market, offering access to early-stage businesses poised for exponential growth.
