Alternative Investment Updates – August 2024

Equity Investors couldn’t have been happier with the current state of the market!

A recent news story has left everyone stunned. A Delhi-based two-wheeler dealership, operating under the showroom name “Sawhney Automobiles” and exclusively dealing in Yamaha bikes—Resourceful Automobile, with just two showrooms, only eight employees, and an admitted less-than-promising outlook—decided to launch an Initial Public Offering (IPO) to raise a modest Rs 12 crore for expansion and debt repayment. This small-cap offering, which should have gone unnoticed, drew unexpected attention. It was oversubscribed by a staggering 418.82 times, with bids totaling an astounding Rs 4,800 crore!

Meanwhile, on the P2P front RBI came up with stringent and immediate regulatory changes on how p2p platforms are managed. The primary reason for it was due to how some platforms were being run however some of the changes brought by RBI are detrimental to the industry.

The salient points of the guidelines were

1. No credit guarantee or enhancement by NBFC-P2P entities
2. Fund transfer through an escrow account within T+1 days
3. Restriction on cross-selling of products
4. No Secondary sale of loans

We feel credit enhancement and secondary sales were good from the investor’s point of view, however, a more stricter portfolio performance audit guidelines could have been more helpful for the investors than a blanket ban.

Below are the key new updates on the various delays across Alternative Investment platforms.

• Growpital Freeze Update

Growpital Freeze Update

Update on SEBI matter:

26th August 2024 was the SAT hearing date. The date has been postponed because Growpital documents containing the response to SEBI were still in transit. This is highly unprofessional behaviour from them and I feel quite pessimistic about a fast resolution.

I hope SEBI provides a timeline on the return of the frozen money of investors as the possibility of a complete refund looks bleak now.

Mr Upadhyaya has summarized the outcome in the video.

Alternative Investment Portfolio Updates

This month we have been exploring a new platform. We will share the details in our next post!

Some of the key interesting opportunities for the month are –

• AltDRX Pune Opportunity
• Assetmonk New NCD Opportunity

ALTDRX Pune Opportunity (15-17%IRR)

Pune Under construction

An interesting opportunity where Investors can acquire under-construction property being developed by Godrej that can provide good returns in exit as under construction has more value unlocking opportunity.

AltDRX has also launched a private opportunity where market makers can get a 15% fixed+ Revenue Share. However, this opportunity is available only for a few anchor investors. You can register and we can connect you to the point of contact for this deal.

Assetmonk  Nova Series NCD (17 % IRR)

Assetmonk has listed a new tranche of Incor group NCD at 17%. This is a small tranche backed by 1.5 X collateral.

.Assetmonk Nova Deal

The group had good debt servicing performance for the past deals listed on the platform. Incor is a diversified group with an interest in pharma and hospitality.

Lending Investment

Randomdimes Youtube

Short Term Investments