Finvolve Pre-ipo Fund Deck

• The pre-IPO market is a unique investment segment targeting companies poised for public listing.

1. The pre-IPO market is a unique investment segment targeting companies poised for public listing
2. These businesses are typically in their final stages of growth before an IPO, offering investors the opportunity to buy equity stakes at valuations significantly lower than post-IPO prices
3. This phase of investment captures the substantial upside potential as companies transition to public markets, combining the growth characteristics of private equity with the liquidity of public markets
4. According to recent data, the IPO Index has outperformed the Nifty 50 by approximately 9% over the last ten years.

Balanced Risk-Reward Profile: A balanced risk-reward profile provides a middle path between risky investments in early-stage companies and lower-reward stocks after they go public. In the last ten years, investments made before companies go public have consistently performed better than the overall stock market. Specifically, the index tracking these pre-public investments has shown around 9% better performance compared to India’s Nifty50 index.

Influence and Growth Potential: Before a company goes public, investors have the opportunity to influence important decisions and help the company grow. Historical data indicates that companies receiving investments before their IPOs have typically seen returns ranging from 25% to 40%. At Finvolve, they take an active role by offering guidance and support to enhance the growth of these companies.

Attractive Valuations: Investors can buy shares at prices much lower than what they would pay after the company goes public. This opportunity also includes the chance to buy shares from existing shareholders. This investment phase offers the potential for significant profit as companies move towards becoming publicly traded.

Liquidity Opportunities: Moving to public markets offers liquidity, letting investors sell shares for profit once trading starts. Historical performance of pre-IPO funds shows that an INR 100 Crores investment could potentially grow to INR 371.3 Crores in 5 years, assuming a 30% annual return.

1. High Net Worth Individuals (HNIs): Individuals with substantial wealth, as defined by SEBI.
2. Institutional Investors: Entities such as banks, financial institutions, insurance companies, and pension funds.
3. Family Offices: Offices managing the wealth of affluent families.
4. Corporate Entities: Companies, trusts, partnership firms, LLPs, and other corporate bodies.
5. Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs): NRIs and OCIs are subject to specific conditions and regulatory approvals.
6. Foreign Portfolio Investors (FPIs): FPIs registered with SEBI.