BackAxis AMC, Inversion eye ₹3,500 cr fund
Axis AMC and Inversion have entered into a partnership to invest in underperforming companies
PremiumMUMBAI : Axis Asset Management Company Ltd, a unit of private sector lender Axis Bank, and Inversion Advisory Services, promoted by telecom sector veteran Akhil Gupta, on Tuesday said that they have entered into a partnership to invest in underperforming companies.
They plan to raise as much as ₹3,500 crore for the proposed fund.
An application has been filed with markets regulator Securities and Exchange Board of India (Sebi) seeking registration for the proposed fund.
The fund will be sector agnostic and has a base size of ₹3,000 crore with a greenshoe option to raise an additional ₹500 crore.
The partners aim to acquire controlling stakes in pre-stressed, stressed, distressed and other underperforming assets, the entities said in a statement.
“It will be a unique first-of-its-kind offering that will look to take controlling equity stakes in underperforming companies before working with them to turn them around," the statement said.
It will thus help such quality companies with strong performance and operational capabilities, which may be facing temporary headwinds owing to special circumstances, including unsustainable debt, temporary disruptions, etc., to get on a credible turnaround path, it added.
“It gives me great pleasure to see Axis Asset Management Company tying up with Inversion Group to tap into the unique opportunity of turnaround investing, and I strongly believe that together we can create an offering that can help investors participate profitably in this asset class," said Amitabh Chaudhry, managing director and chief executive officer of Axis Bank.
“The addition of this new capability will also take us forward on our path of creating a market-leading alternatives platform within the asset management company," Chaudhry added.
The partnership between Axis Asset Management Company and Inversion Advisory Services seeks to help fill the shortage of high-quality equity capital in the country’s stressed company ecosystem, which has seen several debt offerings but lacks strong equity investors with an operational skillset.
Axis Asset Management Company, the investment manager of the fund, will employ a team to evaluate potential opportunities.
Inversion would provide management support to acquired companies with a team of functional industry experts.
“The combination is ideal to not just exploit large untapped potential in this space but also serve an important social purpose in saving a large number of jobs and capital already invested by shareholders, lenders and vendors in such companies," said Gupta, chairman, Inversion Advisory Services.
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