Singapore’s contribution to India’s financial markets goes beyond private wealth management and hedge funds. It is the largest FII and the 8th largest institutional investor in India. FDI from Singapore is worth over $150 billion and is increasing.
Singapore is second only to the US among the top FIIs in India. Besides the Singapore Government, Nalanda Capital and Amansa Capital are some of the major Singapore-based funds investing in India. The Singapore government’s Indian portfolio is skewed towards the BFSI, Oil & Gas, Cement & Construction, Software, and Auto sectors.
The portfolio value of the Government of Singapore was around Rs. 270,000 crore as of June 2024, with investments in around 57 companies. Its top investments include Bajaj Finance, Bharti Airtel, HDFC Bank, ICICI Bank, Infosys, L&T, Reliance Industries, Sapphire Foods, Samhi Hotels, Shriram Finance, M&M, and NTPC. Apart from the government, which invests through GIC, a sovereign fund of Singapore, two other government agencies—the Monetary Authority of Singapore and Temasek Holdings—manage investments.
Nalanda Capital’s top investments by holding value, out of the 24 stocks it owns, include Amara Raja Energy & Mobility, AIA Engineering, Berger Paints, Havells, Info Edge, Page Industries, MRF, Ratnamani Metals & Tubes, Supreme Industries, and Thermax. Meanwhile, Amansa Capital has invested in 22 companies, with its top 10 holdings including Bharat Forge, Cyient, Eicher Motors, Design Arena, Intellect, Poonawalla Fincorp, Fortis Healthcare, SRF, Sundram Fasteners, Trent, and V-Mart.
The Monetary Authority of Singapore’s portfolio value was over Rs. 5,000 crores, with investments in 6 companies: Affle, Godrej Properties, Max Healthcare, Sapphire Foods, Shriram Finance, and Sona BLW Precision Forgings. Temasek Holdings’ net portfolio value in FY24 was around $20 billion. Their website and news sources suggest investments in HDFC Bank, ICICI Bank, Manipal Health (unlisted), NSE India (unlisted), Schneider Electric, and Zomato, to name a few.
In the last couple of quarters, the government has also added a few more stocks to its portfolio, like Apollo Hospitals, Data Patterns, Entero Healthcare Solutions, Indigo, Timken, etc., showing an inclination towards sectors like healthcare, technology, capital, and intermediary goods. Given the historically strong relationship between India and Singapore, both culturally and economically, India is in a sweet spot for investments.
Disclaimer: This blog has been written exclusively for educational purposes.
Source: Economic Times
Date: September 4th
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