Alternative Investment Updates – May 2024

June will be a significant month for the market due to the upcoming Lok Sabha elections

Analyzing the impact of elections on the Indian stock market reveals intriguing trends. While markets typically demonstrate a subdued response to election results on the counting day, exceptions exist, notably in 2004 and 2009. In those years, the market witnessed significant fluctuations, with a downturn following the unexpected victory of the Congress-led UPA in 2004, and a subsequent upsurge in 2009 as the UPA retained power.

Post-election market performance is crucial for investors. Analysis of eight past Lok Sabha elections indicates that in four instances, markets experienced a decline one year following the declaration of results. Notably, periods of political instability, such as during 1996-99, often correlated with market downturns. Similarly, the market dip after the 2019 elections was attributed to the global impact of the Covid-19 pandemic.

However, barring extreme instability or external crises like the COVID-19 pandemic, Indian markets have historically provided favorable returns to investors. For instance, the period following the 1991 elections, marked by economic liberalization under the PV Narasimha Rao-led government, yielded substantial gains. Even after the 2004 elections, despite an initial crash, markets rebounded swiftly, driven by robust GDP growth and increased foreign investments.

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

• Growpital Freeze Update
• Bigspoon Gripinvest Default

Growpital Freeze Update

Honestly, the Growpital case doesn’t seem to be heading anywhere. SEBI has given the next date at 21 June for Growpital to share the relevant documents. Recently someone interviewed a SEBI employee on the Growpital case. Her response doesn’t seem positive.

 

 

Gripinvest Bigspoon Default

Grip has recovered around 75% of the principal from Bigspoon through asset sale and liquidation. They have proceeded with litigation against the founders as well as the kitchens that are holding the assets.

Grip Has been good at communicating the development of the case and recovery process. They have recently shared an update on the legal actions they have pursued.

Alternative Investment Portfolio Updates

This month we have added a new platform Assetmonk. We met their team and went through some of the deals they have offered as well as talked to their old investors.

Some of the key deals we are investing in this month are

• Altdrx Hyderabad opportunity
• Assetmonk EV revenue-based opportunity
• Earnnest Real Estate NCD

• ALTDRX Hyderabad Opportunity (15-18%IRR)

We would be participating in the Hyderabad opportunity as our experience with our first investment had been good. Below are the deal highlights and Hyderabad Prime Plots Market Overview .

Altdrx Hyderabad property

• Assetmonk EV revenue-based opportunity (Upto 18% IRR)

Assetmonk has recently issued an RBF deal with a potential of 18% IRR. What we liked about this deal is that though it’s a RBF deal we still have hard collateral that includes a charging station real estate and security thus overall risk is lower than the Klub Direct to customer deals that were mostly unsecured or had depreciating assets as security.

Assetmonk Spark Deal

• Earnnest Real Estate NCD (Target IRR 15.5%)

The third tranche of Project Rise is Live. The company had a robust Jan to Mar 24 quarter with 50 units sold across projects. Both construction and sales are progressing well. This investment has already returned 28.5% of the principal amount (16% on Mar 24 / 12.5% on May 24) to the investors. The handover of advanced stage phases will begin soon and construction/sales have also begun for the subsequent phases.

Apart from that 2 other opportunities are also live. You can use the below code to get 0.5% Extra!

Use Code PX64XW to get 0.5%

Randomdimes Youtube

Short Term Investments