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Modulus Alternatives Investment Managers Limited, an established private credit platform, has committed to invest INR 150 crore in Shivam Autotech Limited, one of the largest manufacturers of transmission gears and shafts in India. The first tranche of INR 105 crore has been invested. This is the maiden investment of Modulus Alternatives’ second private credit fund, India Credit Opportunities Fund II (ICOF II), which was launched earlier this year.

ICOF II follows the success of the first Fund, Centrum Credit Opportunities Fund, which is tracking mid teen returns since inception. Shivam Autotech is the16^th investment of Modulus Alternatives, thus taking the total invested capital to INR 1,895 crore in the private credit platform. Till date, the firm has exited 10 investments and returned more than INR 825 crore of capital to investors.

According to Rakshat Kapoor, Chief Investment Officer, Modulus Alternatives Investment Managers Limited said, “We are delighted to have entered into this partnership with Shivam Autotech, a forerunner in the auto ancillary manufacturing sector. We strongly believe that the Company has evolved into a mature auto-component manufacturer and with the expansion of its product line to include 4W, and partnerships with major automakers, it is uniquely positioned to capitalize on the significant growth opportunities, going forward. Shivam Autotech also presents an opportunity for Modulus Alternatives to partner with committed auto component manufacturers that are creating world- class, market driven products.”

ICOF II is a category II AIF with a targeted corpus of INR 1,250 crore, including INR 500 crore as a green shoe option. The Fund has received remarkable interest from investors and raised commitments in excess of INR 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.

Led by Yogesh Munjal and Neeraj Munjal of the Munjal Group, Shivam Autotech has grown into one of the largest manufacturers of transmission gears and steering components across 2W and 4W segments. The proceeds of the investment will be utilized for both growth and working capital. 

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