UTI Mutual Fund is set to launch a second offshore equity fund to raise $300 million in Dublin next month, shortly after mopping up $300 million through a similar fund last year which tapped vast European investments.
“We are launching offshore equity fund in Dublin to raise $300 million. The approval process is going on and it would likely be launched in April,” Leo Puri, managing director of UTI, told PTI at the ‘Emerging India Forum 2015’ organised by an Indian media house in Singapore.
“We see a potential to get $1 billion,” he said when asked about the scope of raising funds to support investments in India.
UTI Mutual Fund has already raised $300 million through a similar fund launched in Dublin in December 2014, which tapped the vast European investments.
Puri also estimates $2-3 billion investment flow into India’s insurance sector in the next six to 12 months after the Upper House of Parliament approved a Bill increasing foreign investors participation in the sector up to 49 per cent from 26 per cent previously.
He said India is gaining more foreign investors’ confidence as the government led by Prime Minister Narendra Modi has given much clearer indication on the path the country is taking.
“The government has laid out the agenda for the next three years which will undoubtedly bring back the capital investment into the country and create opportunities for foreign investors,” Puri said.
“That is why we are here today for a dialogue with foreign investors to start telling the story about India more clearly,” he said, while delivering a keynote address at the forum.
Puri also said that he expects consolidated Foreign Portfolio Investment (FPI) in India to double in the current fiscal year 2015-16, given the strong economic fundamentals and the government’s plans on public sector units’ disinvestment.
He estimates $30-40 billion FPI, a consolidation of Foreign Direct Investment and Foreign Institutional Investment, in 2015-16.
He has cited the government’s PSUs disinvestment plan for Rs 70,000 crore (over $11 billion) as well as an anticipated initial public offers (IPOs) by some of the leading Indian companies, especially those in the infrastructure sector.
The disinvestment would attract 30-50 per cent investment, he added.