Apohan mainly engages in the sell-side advisory for the small and medium enterprises in equity funding assignments. As an equity investor, you can explore investing in the opportunities that we have identified. Also, we can identify for you a particular profile of a business for equity investment, providing you the end-to-end buy-side up of advisory.
Equity funding in small and medium enterprises in India is relatively rare. SMEs are primarily refunded through the owner equity of the promoters and the bank loans. The sum of this equity, the bank loan and the internal excess accruals determine the upper limit of capital available for SMEs. Many of these businesses have huge growth potential. Many of them would make an excellent business if a financial turnaround is achieved earning handsome returns for the investors.
Except for the listed companies, there is no well-regulated, well-governed, central equity marketplace. There is no regulator. There is no institutional setup of investment professionals providing the exhaustive services right from identification of the investment objectives, to the identification of a suitable business, to communications and negotiations, to valuation and contracting, etc. It is the investor himself who has to directly co-ordinate strategic as well as the compliance-related services equity transaction from multiple consultants. Investors keep on getting multiple proposals which either are incomplete or are not in alignment with their investment philosophy, wasting their precious time. To address this concern, Apohan has developed a business selection mechanism.
Following are the main concerns of the equity investors when it comes to investing in Indian small and medium enterprises.
Absence of professional corporate environment:
Absence of transparency:
Absence of policy framework:
Absence of documentation:
Inability to appreciate investor requirements:
Inability to work in a collaborative manner:
Absence of reasonable offer:
At Apohan, we fully understand the concerns of the investors. Our selection criteria for companies for equity funding take care of all these concerns.