Monarch Networth Capital, an Ahmedabad-based financial services firm, will soon launch its Rs 250 crore category III AIF fund and a Rs 100 crore startup fund, which it will seek to raise from high networth individuals or HNIs, according to a senior company official. In the current fiscal year, it will also apply for a mutual fund licence.

While the Cat III fund will only invest in publicly traded companies, the startup fund will invest in emerging technology companies with an initial cheque size of Rs 5 crore.

Monarch Networth Capital Limited and its subsidiaries in India provide financial services to corporate, institutional, and retail clients. It operates in four segments: broking, wealth management, non-banking finance, and merchant banking.

According to Vaibhav Shah, managing director of Monarch Networth Capital, the company plans to close the funds by the end of the current fiscal year.
This is the company's second Cat III fund, following the launch of a Rs 70 crore AIF in October 2020.

The company's first AIF invested in Tata Metaliks, Kirloskar Ferrous, Polycab, Gujarat Gas, and Galaxy Surfactants, among others.

“Since the launch of the fund in October last year, the AIF has generated returns of 54% against the Nifty returns of around 35% in the same period,” said shah.

According to him, the AIF is focused on selecting businesses that have leadership positions in niche products or services and have consistently demonstrated a compounded annual growth rate in operating cash flow in the double digits.

“The company plans to launch its second AIF of Rs 250 crore in the next two months. We want to capitalize on our strong retail base of 2.5 lakh retail and HNI clients for our fund-based businesses,” Shah added.

He also stated that the company will apply for an MF licence in the current fiscal year.

The company's net profit increased 8x year on year to Rs 15 crore from Rs 1.88 crore in Q1FY22.

Monarch Networth Capital Limited operates through a network of about 70 branches and business associates. In December 2015, the company changed its name from Networth Stock Broking Limited to Monarch Networth Capital Limited. Monarch Networth Capital Limited was established in 1993 in Ahmedabad, India.