Exploring the Growth Potential: Paradise Moon Investment Fund Enters SME IPO Market

Paradise Moon Investment Fund, an Alternative Investment Fund (AIF) in India, has announced plans to raise Rs 750 crore targeting the growth in SMEs through IPOs. With government support and significant returns from SME IPOs over recent years, the fund aims to become a leading investor in this booming sector.

Paradise Moon Investment Fund, an Indian Alternative Investment Fund (AIF), has disclosed its strategy to raise Rs 750 crore, aimed at leveraging the high returns from the SME IPO market. Over the last few years, the sector has seen remarkable growth, buoyed by government support and promising returns.

An AIF is a privately pooled investment vehicle established or incorporated in India. Paradise Moon aims to offer investors a unique opportunity to exploit the burgeoning SME sector, both pre and post-IPOs. According to Managing Director Naveen Bansal, the SME sector now contributes to a third of the nation's GDP.

The SME sector's IPOs have delivered substantial returns, outperforming larger companies on the main exchange board. In support of this sector, the government announced a Rs 50,000 crore equity infusion under the 'Aatmanirbhar Bharat' package in July 2023.

(With inputs from agencies.)