Advik Capital Limited, as part of its long-term business strategy and to expand its business interest in diverse verticals, is inching closer towards becoming a ‘Systematically Important NBFC’, with its elongated financial strength, net worth of approximately Rs 1,100 million and total assets of approximately Rs 2,000 million.

With a view to achieving this coveted status, Advik Capital’s management has already initiated a business expansion strategy with the objective of broad-basing its portfolio and diversifying into futuristic new-age businesses, complimenting and supplementing the existing business lines with holistic evaluation parameters, pooling in more resources required to boost its business operations, and hiring industry veterans as domain experts on risk, operations, governance and technology.

The strategic business decision of the company to get itself recognised as a ‘Systematically Important NBFC’ by 2025 will further strengthen its position in the financial market by way of offering more structured products to its customers.

R.B.I. CRITERION

The Reserve Bank of India recognises an NBFC as ‘Systemically Important’ only if it has an asset size of Rs 500 crore or more. Systemically Important NBFCs are considered critical and important entities as they have a bearing on the financial stability of the overall economy, and are eligible to participate in niche segments of the financial market.

Meanwhile, the company had firmed up its plan to apply for license for Alternative Investment Fund Category - II (AIF) with SEBI Alternative Investment Fund Regulations. The company is aiming to raise up to Rs 250 crores in its Alternative Investment Fund and as sponsor of the proposed AIF has earmarked is committed to invest 10% of the corpus of the fund. This initiates part of Advik

Capital's business expansion strategy with the objective of broad-basing the portfolio, and diversifying into futuristic new edge businesses, complimenting and supplementing the existing business lines of the company. The proposed category AIF shall investment in sunrise sectors including but not limited to Health Care, Infrastructure, Manufacturing amongst others.

The investment will be in the form of equity, quasi equity, or structure debt. In the second phase, the company intends to extend its investments footprints in the such operational operational but stressed assets-which can be revived with timely strategic interventions, Financial support, thus creating value for all the stakeholders. Advik Capital will leverage its experience in the equity capital markets in the listed and unlisted space as well as has to plan strategically positioned the fund within the Performing Credit space. The strategic business decision of Advik to establish an AIF will further strengthen its position in the financial market by way of offering more structured products to its customers.

Advik Capital Limited, headquartered at New Delhi, is engaged primarily in the business of providing financial loans and ancillary services, and is an emerging non-deposit taking NBFC registered with the RBI (Registration No. B-14.00724). The company’s wholly owned subsidiary, M/s Advikca Finvest Limited, is engaged in the business of making investments in capital market instruments in India and has plans to eventually make investments abroad as well. The company is listed on BSE (Scrip Code: 539773).