Axis Asset Management Company Ltd (Axis AMC) has joined hands with Inversion Advisory Services (Inversion) to invest in underperforming companies.
Inversion is promoted by telecommunications veteran Akhil Gupta, who was earlier with the Bharti group, while Axis AMC is promoted by Axis Bank.
Axis AMC and Inversion are planning to raise up to Rs 3,500 crore for the proposed fund under its Alternative Investment Fund registration.
They aim to acquire a controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets, a statement said on Tuesday.
Under the partnership, the duo are planning to take advantage of the strong fund management expertise of Axis AMC and operational and turnaround expertise of Inversion to offer a unique platform for investors.
They will look to take controlling equity stakes in underperforming companies before working with them to turn them around.
This is also expected to help companies with strong performance and operational capabilities, which are hampered by temporary headwinds due to special circumstances, including unsustainable debt and temporary disruptions to get on a credible turnaround path.
Axis AMC added that the partnership seeks to help fill the gaping shortage of high quality equity capital in the country’s stressed company ecosystem, which has seen a number of debt offerings but lacks strong equity investors with an operational skill set.
