Maharashtra Defence & Aerospace Venture Fund

Brief Introduction

Maharashtra Defence and Aerospace Venture Fund (the “’Fund”’) is a Trust established in India under Indian Trusts Act, 1882, the Trust has been settled by Maharashtra Industrial Development Corporation (“MIDC”) as “the Settlor” and IDBI Trusteeship Services Limited (‘ITSL’’) was appointed as the “Trustee” of the fund. Further, Vide Investment Management Agreement the Trustee has appointed IDBI Capital Market & Securities Limited as the Investment Manager to the fund.

The Trust has been registered with the Securities and Exchange Board of India (“SEBI”) as a category II, Alternative Investment Fund having registration number IN/AIF2/18-19/0578 dated September, 05, 2018 under the SEBI (Alternative Investment Fund) Regulation, 2012.

The primary Investment objective and focus of the fund is to promote sustainable enterprises in the defence, aerospace and allied sectors in Maharashtra, India. The Fund would invest in companies which supply goods or services to defence, aerospace or which manufacture or supply components for defence/ aerospace industry or are strategically important for India. The Fund would invest in companies through multiple instruments such as equity or equity linked investments, convertible instruments, and debentures, so as to achieve risk adjusted returns.

The Fund would strive to generate high returns by investing in a judicious mix of growth investments opportunities and early / start up stage opportunities. The combination of the instruments shall be chosen to attain the objective of maximizing the return on investments in accordance with the provisions of the Regulations. The Fund’s investments will be done in securities (both debt and equity) of enterprises through multiple instruments such as equity / equity related investments, convertible instruments, debentures, etc.

Fund Investment Criteria

The following is an illustrative list of criteria to be met by every applicant. The competent authorities reserve the right to add and edit other fund/company specific criteria. The final decision of investment / divestment shall be subject to approval from the competent authorities of the funds.

The fund will look for excellent entrepreneurial qualities; strong capability in innovation (preferably IP) based products/ services or highly scalable businesses with proof and track record and a clarity and focus of business models. The company must have sound governance standards and ethical practices and a capability to put in place systems and processes which will support the growth plans of the company. It should also have a strong management team with relevant and complementary experiences.
The fund invests only in companies registered in India under The Companies Act, 2013 (or registered under the erstwhile Act).
The Company and its operations shall be domiciled in the state of Maharashtra or willing to expand its operations to Maharashtra.
The company shall meet the criteria of Start-up as per start up India initiative by Government of India.
The company shall be an MSME and meet the criteria as per the Ministry of MSME/Micro, Small and Medium Enterprises Development Act, 2006.
Going forward, the company shall aim to achieve at least 80% of the total revenues from the defence and/or aerospace segment.
At least 40% of the total capital employed in the business shall be made by the erstwhile shareholders / promoters of the company or any other Investor.

Investee Companies