Transcription of Finance News Network Interview with India Fund Limited (ASX:INF) Executive Chairman, John Pereira
Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from upcoming listing, the India Fund is Executive Chairman, John Pereira. John, welcome to FNN.
John Pereira: It’s a pleasure, thank you for having me.
Carolyn Herbert: Can you start by giving us an introduction to the India Fund?
John Pereira: India Fund Limited (ASX:INF) is a unique listed investment company, to be listed on the Australian Stock Exchange. It focuses predominantly on large cap investment Indian securities on the Bombay Stock Exchange and the National Stock Exchange. So it’s a very exciting opportunity for investors to get exposure to the fastest growing economy in the world.
Carolyn Herbert: Can you tell us about the size of the IPO?
John Pereira: The IPO is targeting $50 million and we have a minimum of $16 million, and we’re well underway.
Carolyn Herbert: And what’s the expected listing date?
John Pereira: The listing date we’ve got is roughly in mid-July. So it’s about six weeks from today.
Carolyn Herbert: Can you tell us a bit more about the terms of the offer?
John Pereira: The terms of the offer are very simple. We have a $1 share and attaching to that share we have a free option, which is listed from day one, which produces a value for the shareholder.
Carolyn Herbert: Can you tell us a little bit more about the Indian equities market?
John Pereira: The Indian market is a very exciting market. It is not necessarily different from Australia, but let me give you the composition. So predominantly, what is very similar to Australia, is financial services. Now 24 per cent of the CNX 500, which is the benchmark, is made up of financial services. Now India is a country that is exploding in terms of financial services, so that the new opportunities that we have are motorcar leasing, credit card, all those type of facilities.
Carolyn Herbert: What about the portfolio manager, can you tell us a bit about them?
John Pereira: The portfolio manager’s Kotak Mahindra Bank. And Kotak is the fourth largest private bank in India, with a long-term track record of managing Indian equities, for foreign investors. One of the interesting things about Kotak is that it previously had a joint venture with Goldman Sachs Group Inc. (NYSE:GS), and has a long history of joint ventures with international companies. So it’s here in Australia joint venturing with Tristar Capital, which is a company that I run and together, we are offering this investment to Australian investors.
Carolyn Herbert: When will the offer open and where can people get a copy of the prospectus?
John Pereira: The offer will open shortly, in about two to three weeks time and the prospectus will be available on www.indiafund.com.au.
Carolyn Herbert: Finally John. What’s the consensus outlook for the Indian market for the next 12 months?
John Pereira: Globally, investment managers are looking at India to invest in. Why, because IMF have projected a 7.5 per cent GDP growth in India next year. And the trajectory for that growth is long-term. So with the Modi Government coming into power 18 months ago, structural changes contributed significantly to that GDP growth, and we look forward to that continuing in the long-term.
Carolyn Herbert: John Pereira, thanks for the introduction and good luck with the IPO.
John Pereira: Thank you very much for having me.