Shivalik Builders & Developer Introduces AIF & Raises Rs. 300 crore

An Ahmedabad-based famed real-estate developer, Shivalik Group has launched an Alternate Investment Fund (AIF) to raise Rs. 300 crore in fast developing regions of Ahmedabad and Gandhinagar districts.

Founder of the Shivalik Group, Chitrak Shah said, “We are perhaps the first real-estate developer in Gujarat to launch an AIF.” Shivalik Group has recently received approval from the Securities Exchange Board of India (SEBI) for its first fund, Shivalik Investment Fund.

The proposed Category-II AIF plans to raise Rs.300 crore through private placement, including a Rs.150-crore Green Shoe Option exercisable at the discretion of the investment manager.  

Chitrak Shah also mentioned that, the AIF will mobilize funds from domestic investors, including individuals and family offices, HUFs, high networth individuals, private institutions and other corporate bodies. He said, “We have been getting a lot of inquiries from high networth individuals and non-resident Indians, who were keen to invest in Gujarat’s growth story. So we pooled this fund.”

The AIF will use 50-60% of the pooled fund in developing upcoming areas in Ahmedabad, Sanand and Gandhinagar. Nearly 30% of the fund will be invested in other projects outside the Shivalik Group, while the rest will be used in funding start-ups.

The primary objective of the fund is to generate superior long-term capital appreciation from investment in entities in the real estate sector. Shah added, “We plan to provide 17-18 per cent annual returns to our investors.”