Kotak Mahindra is moving ahead with its float of what it claims to be the first ever equities fund from an Indian bank on the London Stock Exchange (LSE).
The Kotak India Infrastructure fund is a proposed new closed-ended investment company incorporated in Guernsey but listed on the LSE.
Nitin Jain, the principal fund manager, will focus on investing in a diversified portfolio to capitalise on India’s private sector involvement in the infrastructure sector.
Once launched, Jain aims to provide his shareholders with long term capital appreciation by investing in 40-60 listed equities, equity linked securities and companies preparing for a stockmarket flotation. The firms are either registered in India or derive a significant portion of their business from India. (article continues below)
Overall, the listed Indian infrastructure universe comprises more than 360 entities with a market capitalisation of over $50m (£31.3m).
The group seeks to raise a maximum of £100m through an institutional placing and an offer for subscription aimed at private investors. Investec Bank is the appointed sponsor and broker.
Kotak Mahindrais a wholly owned subsidiary of India’s Kotak Mahindra Bank.