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Kotak launches India infrastructure fund

Kotak launches India infrastructure fund

13 January 2011

Indian financial services firm Kotak Mahindra is to offer investors the chance to capitalise on the emerging markets infrastructure overhaul with the launch of the Kotak India Infrastructure Fund.

The fund, launched by Kotak’s UK subsidiary and managed by Nitin Jain, will invest in companies directly or indirectly involved in the infrastructure sectors in India with the aim of providing long-term capital appreciation.

The close-ended fund will be domiciled in Guernsey and listed on the London Stock Exchange. The company is aiming to raise up to £100m for the fund via an institutional placing and a subscription offer for private investors.

Though benchmarked against the FTSE IDFC India Infrastructure 30 Index, Kotak Mahindra expects the portfolio to “diverge substantially” from benchmark constituents. The portfolio will contain between 40 and 60 holdings, and will have no hedging of currency exposure at launch.

“The listed Indian infrastructure universe is broad, liquid and deep with over 360 listed entities having a market capitalisation of over $50 million. With the increased government spending, the sector is poised for a valuation re-rating in the coming years, and may offer superior long-term risk adjusted returns,” said Jain.

With the pace of development of Chinese infrastructure having long been a sign of that country’s remarkable economic prosperity, the three other Brics are now playing catch up with the launch of huge infrastructure investment projects backed by the public and private sectors alike.

In Brazil, both Martin Currie and BNY Mellon are looking to take advantage of an infrastructure boom that sees 150 separate major infrastructure projects scheduled between now and 2014.

Contact us

US

  • New York
    +1 212 600 8850
    40.750669
    -73.978524
    Kotak Mahindra Inc
    New York 369 Lexington Avenue, New York, NY 10017
    United States


UK

UAE

  • Dubai
    +971 4 3848901
    25.242298
    55.301784
    Kotak Mahindra (UK) Limited Office
    Office No. 208, Level 2, Tower 2, Al Fattan Currency House Dubai International Financial Centre,P O Box 121753, Dubai UAE
    United Arab Emirates


Singapore

  • Raffles Quay, Singapore
    +65 6290 5590
    +65 6290 5581
    1.281430
    103.850970
    Kotak Mahindra (UK) Limited
    16 Raffles Quay 35-02/03 Hong Leong Building
    Singapore


  • Raffles Quay, Singapore
    +65 6290 5590
    +65 6290 5581
    1.281430
    103.850970
    Kotak Mahindra (UK) Limited
    16 Raffles Quay 35-02/03 Hong Leong Building
    Singapore


Mauritius

  • Port Louis
    +230 212 9800
    -20.165300
    57.496400
    Kotak Mahindra (International) Limited
    Port Louis 4th Floor, Les Cascades Building Edith Cavell Street
    Mauritius