A Rs 1,500-crore private equity (PE) fund targeted at advanced manufacturing industries like aerospace, defense, and energy transition has been raised by ValueQuest Investment Advisors.
ValueQuest Tristar, a fund that is entirely denominated in rupees, has activated a Rs 500 crore greenshoe option after exceeding its target size of Rs 1,500 crore. Within the current year, the fund hopes to conclude its fundraising.
The Mumbai-based firm claims that the fund expects to finish capital deployment in 18 to 24 months and intends to support 8 to 12 companies with check sizes ranging from Rs 150 crore to Rs 400 crore. Businesses with established customer relationships, positive unit economics, and a demonstrated product-market fit will be the main focus.
Given that a number of businesses in the advanced manufacturing sector are also utilizing the initial public offering (IPO) market, ValueQuest stated that now is the ideal moment to invest in these sectors.
The fund has previously made an investment in Rangsons Aerospace, a precision manufacturing business that serves well-known domestic and international aerospace and defense customers. Additionally, Waaree Energy Storage Solutions, which produces lithium-ion cells, battery packs, and energy storage systems for both Indian and foreign markets, has received its support.
When it comes to investing in the defense industry, the fund was among the first to support projects like Mazagon Dock, Cochin Shipyard, HAL, BEL, and Garden Reach before the industry gained support from policymakers.
