ValueQuest Investment Advisors has successfully raised a Rs 1,500-crore private equity fund aimed at capitalising on opportunities in advanced manufacturing sectors, including aerospace, defence, and energy transition.
The fund, named ValueQuest Tristar, is structured as a fully rupee-denominated vehicle. It has exceeded its initial target of Rs 1,500 crore and has also exercised a greenshoe option of Rs 500 crore. The Mumbai-based investment firm expects to complete the fundraising process within the current calendar year.
Under this strategy, the fund intends to invest in 8 to 12 companies, with individual cheque sizes ranging between Rs 150 crore and Rs 400 crore. ValueQuest anticipates deploying the capital over the next 18 to 24 months. The focus will be on companies that demonstrate proven product-market fit, healthy unit economics, and strong, established customer relationships.
According to the firm, the timing is favourable for deploying capital into advanced manufacturing, especially as several businesses in this segment are increasingly accessing the IPO markets. The fund aims to position itself alongside companies benefiting from structural tailwinds in domestic manufacturing and strategic sectors.
The portfolio already includes an investment in Rangsons Aerospace, a precision manufacturing company that caters to prominent domestic and international aerospace and defence clients. Additionally, the fund has backed Waaree Energy Storage Solutions, which produces lithium-ion cells, battery packs, and energy storage systems for both Indian and global markets.
In the defence segment, ValueQuest has a track record of early investments in public sector undertakings such as Mazagon Dock Shipbuilders Limited, Cochin Shipyard Limited, Hindustan Aeronautics Limited, Bharat Electronics Limited, and Garden Reach Shipbuilders & Engineers, having entered the space even before policy momentum strengthened in favour of the sector.
With this new fund, ValueQuest is positioning itself to deepen its exposure to India’s evolving manufacturing ecosystem, backing businesses that combine technological capability with long-term structural demand across strategic industries.
