Micro, Small and Medium Enterprises (SMEs) play a major role in economic growth and transformation of an economy, thereby contributing towards employment, social stability along with sustainable and balanced growth to any fast developing economy. And India’s SME story is no different!
Indian SMEs contribute nearly 1/3rd of India’s Gross Domestic Product. Provide large scale employment upto 25% working force in India. Almost 45% of exports are provided by SMEs.
Global SME trend has remained almost similar to India’s story. However it is important to note that China’s SME market-cap is ~317 times that of India, while it’s GDP is ~4.5 times that of India. Surprisingly, UK’s market-cap is ~39 times that of India, while it’s GDP is ~0.96 times that of India.
We have observed SME interest of Institutions and Ace Investors is rising. Recently, several AMCs and Institutions’ participation in the SME space is increasing.
We are SME focused asset management firm in India with biggest bench strength of 150 SME stocks with 45% of SME listed universe. Being the though leaders we have access to all corporates and excellent connect with sector experts. As per industry expert view, Indian SMEs will require upto $ 1 trillion capital by 2020. And we are the front runners assisting and accelerating India’s SME growth story.
Our firm belief is that research based long-term investing will unleash the true value in the SME space. The 3 Ps –Promoter, Product and Price – are the foundation of our investment philosophy.
Promoter is one who has Passion for its products, Focus on the business and conduct’s the business with Unquestionable Integrity.
The Product has substantial competitive advantages over others and has the ability to sustain and protect the same over years to come.
We do not believe in paying high Price for a business, but rather find good businesses and pay a lot less for it.
Our Research process begins with preliminary research of company financials, industry trend and consistency of management commentary. Next step involves competitive analysis of the business. We also draw review from third parties such as dealers, suppliers’ employees and competitors. Last step is performing our self-checks and checking its margin of safety.
We avoid in companies is hot stocks or concept stocks, businesses that we do not understand, expensive valuations, promoters with corporate governance issues. And what we avoid in investing is forecasting the markets, investing on the basis of technical analysis, over churning of portfolio and following the herd mentality.
We follow a holistic approach with proper qualitative and quantitative analysis. We study Qualitative Attributes like promoter pedigree, addressable market opportunity, independent auditors and positive perception of stakeholders. Quantitative factors such as, Sales and PAT growth more than 30%, cashflow from operations greater than 70% and so on.
Further fund raising through private placement of shares including QIBs, Institutions, HNI Investors and/or through existing investors by rights issue.
We offer complete range of service from sourcing, identifying, analysing, negotiating and placing deals with private equity firms for listed as well as unlisted companies.
Medium to long term project financing requirements can be served through debt and debt like instruments. We assist in liaisoning with banks, financial institutions and NBFCs for arranging project based funding requirements to companies.
Pantomath Sabrimala SME Growth Fund is a SEBI registered Category-I AIF, a SME focused fund that majorly invests in SMEs listed or proposed to be listed in India.
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