India has already raised more than $500 million from investors for a new fund that will invest in the stocks of state-controlled companies

India Raises $513 Million for State Company Stock Fund
Foreign Institutional Investors Accounted for About $120 Million
March 21, 2014 8:50 a.m. ET
MUMBAI—India has already raised more than $500 million from investors for a new fund that will invest in the stocks of state-controlled companies, a person familiar with the deal said Friday.
The exchange-traded fund—which was created to buy shares of state companies directly from the Indian government—has raised close to $513 million, out of which foreign institutional investors accounted for around $120 million, the person said.
The fund accepted investments from retail investors until 6 p.m. India time Friday. It is likely to buy the government shares and list before April 4, the person said. It will be managed by Goldman Sachs Asset Management (India) Pvt.The share sale is expected to help ease the pressure on the government to rein in its fiscal deficit. India is trying to keep its fiscal deficit at less than 4.6% of gross domestic product for the financial year ending March 31. Last year, it stood at 4.9%.
Earlier Friday, the Indian government raised $905.7 million by selling a 9% stake in Axis Bank Ltd., one of the country’s largest banks, a person familiar with that deal said. Before the sale, the government owned around 21% of Axis Bank, India’s third-largest privately run bank by assets, after ICICI Bank Ltd. and HDFC Bank Ltd.
The government earlier had planned to raise 400 billion rupees ($6.5 billion) by selling stakes in several state-run companies, but has subsequently lowered its expectations.
Selling parts of its minority stake in Axis as well as the creation of the new fund were both avenues the government had to turn to after failing to sell shares in more state-owned companies.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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