Whalesbook
Chanakya Opportunities Fund, managed by Steptrade Capital, has achieved a partial exit from its investment in Cosmic PV Power, yielding a 2x return in just 10 months. Cosmic PV Power, a solar module and cell manufacturer, recently saw its valuation rise to approximately Rs 1,100 crore. This success aligns with the rapid growth of India's solar manufacturing sector, which is crucial for the nation's clean-tech ambitions.
Chanakya Opportunities Fund, an Alternative Investment Fund focused on the SME Exchange and managed by CA Kresha Gupta and Ankush Jain, CFA, under Steptrade Capital, has successfully executed a partial exit from its investment in Cosmic PV Power. The fund realized a 2x return on its investment within a span of just 10 months. This achievement underscores the robust growth trajectory of India's solar manufacturing sector and the increasing investor interest in clean-tech assets.
Cosmic PV Power, founded in 2020 by Jenish Kumar Ghael and Shravan Kumar Gupta, is a manufacturer of high-efficiency solar modules and cells, utilizing technologies such as Mono-PERC and TOPCon. The company currently operates a 600 MW manufacturing facility and is undertaking a phased expansion to increase its total capacity to 3 GW. Its module offerings, capable of up to ~580 Wp, position it to meet both domestic and international demand for advanced solar products.
The investment exit occurs at a time when India's renewable energy sector is experiencing unprecedented expansion. The country is projected to add nearly 20 GW of solar capacity in FY25, marking the highest annual installation rate to date, with domestic module manufacturing anticipated to exceed 150 GW by 2027, according to Ministry of New and Renewable Energy (MNRE) estimates.
CA Kresha Gupta, Director & Fund Manager at Steptrade Capital, commented, "Our investment philosophy centers on finding scalable, sustainable founder-led businesses in the SME and microcap sectors. Cosmic’s growth demonstrates India’s potential as a renewable manufacturing hub. We anticipate significant growth in domestic solar capacity over the next decade as India aims for energy independence. Achieving a 2x return in just ten months is an achievement in the SME and microcap space, where growth typically takes two to four years."
Impact
6/10
This news is significant for investors interested in the renewable energy and SME sectors, showcasing successful high-return investment strategies within India's burgeoning clean-tech industry. It boosts confidence in specialized funds targeting smaller companies and highlights the strong potential of India's domestic manufacturing capabilities in solar energy.
