Mumbai, Sept. 23 -- When Ravalnath Shende signed a tentative order with Mazagon Dock Shipbuilders and Garden Reach Shipbuilders four years ago, his heart should have been pounding with excitement. The contract was worth Rs.150 crore, nearly eight times the annual revenue of his company, Shree Refrigeration, which made specialized cooling systems for Indian warships.

But instead of exhilaration, Shende remembers feeling dread. His company, barely known outside Pune's industrial circles, had neither the working capital to finance such an ambitious order nor the collateral to persuade a bank to lend.

"I met more than 50 investors," he recalls. "Family offices, venture capitalists, even a few high-net-worth individuals. No one was willing t...