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Modulus Alternatives infuses Rs 105 crore in Shivam Autotech, commits total investment of Rs 150 crore


Private credit platform Modulus Alternatives Investment Managers Ltd on Wednesday said it has infused Rs 105 crore in transmission gear and shafts maker Shivam Autotech as part of its commitment to invest Rs 150 crore in the company. The proceeds of the investment will be utilised for both growth and working capital, Modulus Alternatives said in a statement.

This is the maiden investment of the platform’s second private credit fund, India Credit Opportunities Fund II (ICOF II), which was launched earlier this year, the statement said.

Modulus Alternatives currently manages two Category II Private Credit AIFs, Centrum Credit Opportunities Fund and India Credit Opportunities Fund II.

Shivam Autotech, a Hero Group company, is Modulus Alternatives’ 16th investment, thus taking the total invested capital to Rs 1,895 crore in the private credit platform, it said.

Till date, the firm has exited 10 investments and returned more than Rs 825 crore of capital to investors, it added.

“We…have entered into this partnership (Rs 150 crore committed investment) with Shivam Autotech. We strongly believe that the company has evolved into a mature auto-component manufacturer,” Rakshat Kapoor, Chief Investment Officer at Modulus Alternatives Investment Managers Limited, said. With the expansion of its product line to include four-wheelers and partnerships with major automakers, the auto component maker is uniquely positioned to capitalise on the significant growth opportunities, going forward, he stated. Led by Yogesh Munjal and Neeraj Munjal of Munjal Group, Shivam Autotech has grown into one of the largest manufacturers of transmission gears and steering components across two- and four-wheeler segments.

ICOF II is a category II AIF with a targeted corpus of Rs 1,250 crore, including Rs 500 crore as a green shoe option, the platform said in the statement, adding that the fund has received remarkable interest from investors and raised commitments in excess of Rs 200 crore within a short span.

The AUM of the fund continues to grow as experienced investors explore new avenues for higher debt yields. With a similar strategy as the first fund, ICOF II will invest in mid-sized companies in the performing credit space, it said.


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