Kotak Mahindra targets £100m for London-listed fund

The Indian financial services firm has announced its intention to float on the London Stock Exchange a new, closed-end fund to invest in Indian infrastructure. The Kotak India Infrastructure Fund will aim to raise a maximum of £100m.

Kotak Mahindra UK, a wholly owned subdiary of India’s Kotak Mahindra Bank, has announced the forthcoming launch of a new closed-end investment company – Kotak India Infrastructure Fund – to be incorporated in Guernsey and listed on the London Stock Exchange.

According to a statement, the fund will aim to raise up to £100 million (€120 million; $157 million) to invest in “listed and to-be-listed equity and equity linked securities of companies registered in India or deriving a significant portion of their business from India”.

The placing and offer for subscription will be available to both institutional and private investors, said the statement, which added that investors would be given exposure to a portfolio of between 40 and 60 companies involved in Indian infrastructure.

Nitin Jain, principal fund manager at Kotak Mahindra, said: “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.” 

The prospectus for the listing will be published week commencing 17 January 2011, and the offer for subscription will open from the date of publication.

Kotak Mahindra is a financial services firm establsihed in 1985 which had $11 billion of assets under management/advisory on 30 September 2010. It has interests in commercial banking, retail banking, stockbroking, asset management, life insurance and investment banking.