Systematix Corporate Services Limited has announced its commitment to contribute up to Rs. 10 crore as a sponsor in the Systematix India Equity Opportunities Fund, marking a significant step in the company's alternative investment strategy. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investment Structure and Details

The company will serve as the sponsor to the Systematix India Equity Opportunities Fund, which operates under the Systematix Equity & Credit Investment Trust as a Category II Alternative Investment Fund. The investment structure involves multiple entities within the Systematix group:

Related Party Transaction Framework

The investment constitutes a related party transaction as defined under SEBI regulations. Systematix Wealth & Asset Services Private Limited, a wholly-owned subsidiary of the company, will act as the Investment Manager of the AIF. The transaction is being conducted on an arm's length basis, with no direct interest from the company's promoters in the investment.

Fund Investment Strategy

The Systematix India Equity Opportunities Fund will focus on selective investments in pre-IPO companies and portfolio entities operating in high-growth sectors. The fund's investment approach includes:

• Equity and equity-linked instruments
• Securities and instruments permissible under applicable laws
• Value creation focus for all contributors
• Strategic positioning in high-growth sectors

Regulatory Compliance and Approvals

The company has obtained necessary approvals from SEBI for this investment initiative. The investment aligns with the objectives of the preferential issue approved by shareholders through a Special Resolution at the Extraordinary General Meeting held on October 14, 2024.

Strategic Alignment

This investment represents the execution of the company's strategy to invest in AIFs as a sponsor, in line with SEBI (Alternative Investment Funds) Regulations, 2012. The initiative leverages the group's expertise through its subsidiary's role as investment manager while expanding the company's presence in the alternative investment space.

Systematix Corporate Services Limited has made a significant strategic investment in Industrial Investment Trust Limited (IITL), acquiring equity shares worth ₹3,98,88,000 through market purchase. The transaction, disclosed under SEBI Regulation 30, represents the company's continued focus on diversifying its investment portfolio and optimizing surplus fund utilization.

Investment Details

The acquisition involves 2,77,000 equity shares of ₹10 face value each, purchased at a market price of ₹144 per share. This investment provides Systematix Corporate Services with a 1.23% stake in IITL's total diluted share capital.

About Industrial Investment Trust Limited

IITL operates as a Non-Deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. The company is classified as an NBFC-Investment and Credit Company (NBFCICC) and has been categorized as a base layer NBFC (NBFC-BL) since October 01, 2022, under RBI's Scale Based Regulation framework.

The company primarily functions as a holding company, maintaining investments in subsidiaries and group companies. IITL's business activities encompass:

• Investment in quoted and unquoted equity shares
• Units of mutual funds
• Fixed deposits with banks
• Treasury Bills
• Corporate loans

Financial Performance Overview

IITL's financial performance over the past three years shows varying turnover levels, with the company currently maintaining a market capitalization of ₹330.91 crore.

Strategic Rationale

The acquisition aligns with Systematix Corporate Services' objective of optimal utilization of surplus funds and diversification of income streams. The company expects this investment to contribute positively to its earnings over the medium to long term without any material adverse impact on its financial position or operations.

The transaction does not fall within related party transactions, and no promoter or promoter group has any interest in the acquired entity. The investment was completed through cash consideration and required no governmental or regulatory approvals.