A Temasek Holdings billboard during a press conference on Tuesday, July 9, 2024 in Singapore. Singapore’s state-backed investor Temasek’s big bet on China worsened as the US and India played a bigger role in revenue generation.
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Singapore’s state-owned investment firm Temasek Holdings has performed well in India, with three of its portfolio companies up more than 30% after their market debut this week.
On Wednesday, stocks of logistics companies ship rocket It was listed at a 35% premium and ended the day at 143 rupees ($1.50), nearly 50% above its opening price. The IPO was nearly 100 times oversubscribed due to strong demand from both institutional and retail investors.
dairy products manufacturers milky mist, The company, which went public on Tuesday, traded 40% above its IPO price on Wednesday. Temasek holds more than 5% of the shares in both companies.
It is as follows morbio diagnosticsdebuted on Monday and traded at a 26% premium to its IPO price after falling on Wednesday. According to data on BSE, Temasek holds 8.74% of the company’s shares. Manipal Health, an Indian hospital chain owned by Temasek, went public in India earlier this month at a 25% premium to its IPO price.
“India is our best-performing market on a 10-year basis,” a Temasek spokesperson told CNBC, adding that sovereign wealth funds had invested nearly $9 billion in the country over the past three years. “During the past financial year, we took advantage of periods of market volatility to selectively add high-conviction positions and become net buyers of listed Indian equities.”
Temasek’s optimism about the Indian market is in sharp contrast to other foreign investors, who sold nearly $19 billion in Indian stocks last year and have been net sellers for most of this year, leading to outflows worth $24.7 billion through August 19, according to NSDL data.
India has emerged as Asia’s most disadvantaged market in a survey of fund managers released by BofA Global Research on Tuesday. Lack of utilization of artificial intelligence, slowing growth, slow pace of reforms and high valuations were some of the key concerns cited by asset managers as reasons for underweighting India.
Nitin Jain, chief executive officer and director of Kotak Mahindra Asset Management Singapore, told CNBC that the study is “a clear wake-up signal to Indian policymakers that global investment in India is at its lowest level.”
However, he stressed that foreign investment flows into India are better than three months ago, suggesting that foreign investment flows across bond and equity markets have improved over the past two months.
Meanwhile, Temasek said it “remains positive about India’s structural growth, supported by a large domestic consumer market, growing middle class, formalization, infrastructure development and deepening capital markets.”
The firm is addressing these themes by investing in companies in the consumer, financial services and healthcare sectors, but also sees “growing potential” in companies in the industrial, infrastructure and renewable energy sectors, a spokesperson said.
Singapore funds’ total exposure to India is $42 billion, representing “4x growth in 10 years,” the firm said.
