Chimborazo VENTURES LLP

In their own words

Since the IBC is a fairly new concept, there are very few companies which are focussing on stressed MSME assets and most of them are run by professional money managers. Consequently, their focus is more on resolution of larger stressed assets which can be immediately absorbed by existing competitors and funds and rarely is the focus on MSME assets. Additionally, since a prospective suitor of an MSME is likely to be a MSME competitor itself, it is highly unlikely that the acquiring MSME promoters would have the necessary financial backing to absorb another competitor. This lack of focus on stressed MSME assets under NCLT by the bigger players has created a significant opportunity to buy out such stressed assets at a fraction of their intrinsic value with a view to turnaround the same and then nurture and resell them for significant profits or keep them as portfolio holdings with the original promoters as part of the resolution plan. Chimborazo estimates maximum holding time of each asset to be about 2 years and expected return on each project is estimated to be over 50%.The singular and laser sharp focus of Chimborazo is on this overlooked and extremely lucrative opportunity of buying out these stressed MSME assets and getting MSME promoters of the same assets on board to maximize value.

Written by the company on its public Startup India profile. Not verified by us.