Ashika Credit Capital to consolidate two businesses and launches new subsidiary

Its new subsidiary will focus on Category II alternative investment funds.

India’s Ashika Credit Capital Ltd (ACCL) is consolidating two of its businesses and has launched a new subsidiary.

The Kolkata-headquartered non-bank financial corporation (NBFC) announced that it will consolidate Ashika Global Securities and Yaduka Financial Services. This is expected to consolidate and diversify ACCL’s operations.

It has also launched a new subsidiary, the Ashika Private Equity Advisors, with the goal of tapping into high-growth sectors through Category II alternative investment funds (AIF).

An AIF is any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing, according to a definition by the Securities and Exchange Board of India (SEBI).

Category II AIFs are those that do not fall under the first category— which involve investments in start-up or early stage ventures or social ventures or SMEs, amongst others.

Those covered by Category II include funds such as real estate funds, private equity funds (PE funds), funds for distressed assets, amongst others.

ACCL is also reportedly actively exploring inorganic acquisitions, it said.