Temasek ignores downgrades, is optimistic on India story
By Rajesh Abraham
Jul 05 2012 , Mumbai
Tags: News
Fund has invested $6 billion in Indian companies till date
Temasek, the investment arm of the Singapore government, on Thursday said it was “very optimistic” on India’s long-term potential, dispelling fears expressed by rating agencies which downgraded the country’s outlook recently.
The Singapore sovereign fund, which reported 16 per cent fall in its annual net profit for the year ended March 31, said it would continue to bet on Indian companies, which are proxies for the country’s economic growth. India accounts for 5 per cent of Temasek’s 42 per cent exposure in Asia.
The sovereign fund has $109 billion worth investments in Asia, making India investments at nearly $6 billion. Its total worldwide portfolio grew to $198 billion in the last financial year, from $193 billion previous year.
In the year-ended June, Temasek has invested $180 million in Godrej Consumer Products (over 5 per cent equity stake). It has also trimmed its holdings in ICICI Bank, India’s leading private sector bank, in the last one-year period.
The fund did not provide details of its divestment in ICICI Bank. According to BSE data, its stake in ICICI Bank has come down to 2.07 per cent in the March quarter from 3.46 per cent in December-end. Its other investment in India include 5 per cent in National Stock Exchange, which it acquired in May 2010 from New York Stock Exchange.
Temasek’s co-chief investment officer and head of India, Rohit Sipahimalani said in a statement, “India’s prospects are underpinned by its strong savings and investment rates and a middle income population that is fast growing and relatively young.”
“2012 marks a decade since Temasek actively stepped up its investments beyond Singapore in 2002, reshaping and expanding its portfolio principally into Asia. The Temasek portfolio has since grown from S$77 billion to S$198 billion over 10 years,” according to the statement. On India, the Singapore government’s investment arm said, “Temasek is very optimistic on India’s long term potential, it continues to invest in proxies for growth.”
Sectors benefiting from this set of favourable demographics include financial services, consumer and healthcare. “The increase in urbanisation will also drive investments in infrastructure. We remain optimistic on India’s long term potential and will continue to invest in sectors that are proxies for the country’s growth,” it said.
By Rajesh Abraham
Jul 05 2012 , Mumbai
Tags: News
Fund has invested $6 billion in Indian companies till date
Temasek, the investment arm of the Singapore government, on Thursday said it was “very optimistic” on India’s long-term potential, dispelling fears expressed by rating agencies which downgraded the country’s outlook recently.
The Singapore sovereign fund, which reported 16 per cent fall in its annual net profit for the year ended March 31, said it would continue to bet on Indian companies, which are proxies for the country’s economic growth. India accounts for 5 per cent of Temasek’s 42 per cent exposure in Asia.
The sovereign fund has $109 billion worth investments in Asia, making India investments at nearly $6 billion. Its total worldwide portfolio grew to $198 billion in the last financial year, from $193 billion previous year.
In the year-ended June, Temasek has invested $180 million in Godrej Consumer Products (over 5 per cent equity stake). It has also trimmed its holdings in ICICI Bank, India’s leading private sector bank, in the last one-year period.
The fund did not provide details of its divestment in ICICI Bank. According to BSE data, its stake in ICICI Bank has come down to 2.07 per cent in the March quarter from 3.46 per cent in December-end. Its other investment in India include 5 per cent in National Stock Exchange, which it acquired in May 2010 from New York Stock Exchange.
Temasek’s co-chief investment officer and head of India, Rohit Sipahimalani said in a statement, “India’s prospects are underpinned by its strong savings and investment rates and a middle income population that is fast growing and relatively young.”
“2012 marks a decade since Temasek actively stepped up its investments beyond Singapore in 2002, reshaping and expanding its portfolio principally into Asia. The Temasek portfolio has since grown from S$77 billion to S$198 billion over 10 years,” according to the statement. On India, the Singapore government’s investment arm said, “Temasek is very optimistic on India’s long term potential, it continues to invest in proxies for growth.”
Sectors benefiting from this set of favourable demographics include financial services, consumer and healthcare. “The increase in urbanisation will also drive investments in infrastructure. We remain optimistic on India’s long term potential and will continue to invest in sectors that are proxies for the country’s growth,” it said.
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