Ahmedabad-based investment firm Steptrade Capital has achieved the first close of its Chanakya Opportunities Fund II (COF II), a Category II Alternative Investment Fund (AIF), with investor commitments of over Rs 100 crore. The milestone comes within just three months of the fund’s launch in February 2026, and the vehicle is targeting a total corpus of around Rs 500 crore.
COF II is designed to back high-potential pre‑IPO and late‑stage microcap companies in India, riding on the country’s structural growth story. The fund plans to invest in businesses with strong fundamentals, capable management teams and clear IPO or liquidity visibility, across themes such as advanced manufacturing, energy transition and sustainability. Typical ticket sizes are expected to be in the range of Rs 5 crore to Rs 20 crore per company, depending on deal size and growth potential.
The fund aims to capture the full “private‑to‑public” value cycle by entering at private‑market valuations, supporting scale‑up and governance improvements, and then exiting via IPOs, strategic sales or secondary transactions. Steptrade has already built a strong track record in this space: over the last 24 months, it has deployed about Rs 177 crore across roughly 63 IPOs, delivering an average listing gain of around 35%.
Its earlier Chanakya Opportunities Fund I, which had an initial corpus of Rs 100 crore with a greenshoe option for another Rs 100 crore, focused on profitable SME companies and helped position Steptrade as one of India’s active domestic anchor investors. COF II builds on that experience, with a broader mandate covering both listed and unlisted small and microcap businesses.
The Chanakya Opportunities Fund II is managed by Chanakya Fund Trust and Steptrade Capital, bringing together expertise in private equity, SME markets and IPO investing to support India’s next wave of growth companies.
FAQs [Frequently Asked Questions]
Q1: What is Chanakya Opportunities Fund II and how much has it raised so far?
A: COF II is a Category II AIF by Steptrade Capital targeting pre‑IPO and late‑stage microcaps. It has secured over Rs 100 crore in first close, with a total target corpus of around Rs 500 crore.
Q2: What types of companies will COF II invest in and at what size?
A: The fund will back profitable, high‑growth microcap and pre‑IPO firms in sectors like advanced manufacturing and energy transition, generally investing Rs 5 crore to Rs 20 crore per company.
Q3: What is Steptrade Capital’s track record in IPO and pre‑IPO investing?
A: Steptrade has deployed about Rs 177 crore across roughly 63 IPOs in 24 months, delivering an average listing gain of around 35%, and has backed multiple SME and mainboard offerings.