One of the biggest banks in India is seeking input from British investors as it attempts to jump aboard the country's £650 billion infrastructure developments.
Kotak Mahindira Bank Ltd, the fourth largest bank in India, has recently announced plans to create a London-listed investment trust that will be based in Guernsey, through which they hope to gain up to £100 million from UK investors.
Investors who do take the plunge will be asked for a minimum investment of £1,000 which the Kotak India Infrastructure fund will then invest into power and transport companies back in India. The investors themselves will be granted exposure to a 40-60 strong portfolio of India companies that are involved with the development plans.
The principal fund manager, Nitin Jain, said: "The listed Indian infrastructure universe is broad, liquid and deep with over 360 listed entities having a market capitalisation of over $50 million. With the increased government spending, the sector is poised for a valuation re-rating in the coming years, and may offer superior long-term risk adjusted returns.”
Estimations by the World Bank have pegged India's growth at 8.4 percent in 2011, and the country itself has just seen a massive $1.5 billion project to build new all-weather roads approved.