Alliance of Temasek with the Indian Portfolio Investment Companies

Alliance of Temasek with the Indian Portfolio Investment Companies

Singapore Government-owned global investment company Temasek, is planning to increase its platform for investments in the next one and half years in the Indian portfolio and also has planned to multiply its focus on investment in the major sectors such as health and energy portfolios.

The reason for the Temasek’s attention towards the Indian Companies is due to the capacity of the companies to withstand any situation and the guaranteed growth in the future market, even though most of the equity fund portfolios were damaged by the pandemic effect. 

Temasek India Executive Head Promeet Ghosh in an interview stated that every Indian Portfolio is having a saturated structure to withstand problems. Many of the portfolio companies in the market were constructed to have maximum output and to defend even during the prevailing crisis apart from maintaining positive financial growth and surplus balance sheets.

There are some control issues and also minor risks faced by the fixed fund directed towards the investment in the public and private companies. Temasek India has announced its joint venture with EQT, for a new energy platform O2, in the investments towards the brownfield and greenfield projects in India. According to Ghosh, as they planned, there is an ongoing project of installing a solar energy power plant with a capacity of 980MV. In solar auctions, O2 has a prominent market in India.

According to R. Venkatesh Managing Director, Temasek India, the firm is also interested in investing in its two major platforms i.e. the warehousing platform CapitaLand and high-tech health platform Sheares. In a year, there will be improved progression on making diplomatic decisions except it would be early to discuss the terms of investments. The diplomatic target will be on the regulation of the Sheares portfolio which will be helpful to make progress on digital health initiatives.

In major companies such as UST Global and Zomato, Temasek made follow-on investments for some period of months. Valuing at $220 million, the firm stands as the second-largest shareholder of Pharmeasy, an online pharmacy startup in the last year. Temasek considers this investment as a prudent one with a guaranteed return, even though various reports consider that follow-on investments in companies like Zomato have defaced the value of the firm. According to them, they are in the mission of accelerating the numbers of the balance sheet.

Over the last 15 years, Temasek is trying to liquidate some of its older investments made in companies of GMR Energy, Intas Pharma, NSE for $12 Billion in India in favorable situations.