Friday, January 22, 2010

ADAG set to manage $2.5b Malaysian govt funds

ADAG set to manage $2.5b Malaysian govt funds
Soma Banerjee & Arun Kumar NEW DELHI
RELIANCE Capital Asset Management Company is negotiating with Malaysia to manage up to $5 billion (Rs 23,000 crore) of public and government funds, including money that is part of the national pension fund, persons aware of the development said.
Malaysia is also in talks with other global fund managers for the deal and the Anil Ambani-run company expects to win a mandate to manage around half the $5 billion that the southeast Asian nation’s government wants private asset managers to handle.
Investment arms called government-linked investment companies (GLICs) manage the funds now and they also own stakes in a number of top Malaysian companies. Such companies, called government-linked companies (GLCs), include Telekom Malaysia, automaker Proton and Malaysia Airlines. Surplus cash with some of the GLCs will also be managed by private fund managers.
“He (Mr Ambani) is looking to manage some of Malaysia’s portfolio assets. Also, some of our GLCs,” Malaysian Prime Minister Najib Razak told ET after a meeting with Mr Ambani.
“He is also interested in managing the Malaysia Employees Provident Fund which has huge savings. The company is looking at managing a substantial amount of this fund.”
Malaysia EPF, the national pension fund with about $9 billion under management, is one of the government’s main investment arms.

Govt cos dominate main Malaysia index

THE others include Khazanah Nasional, Permoddalan Nasional, Lembaga Tabung Angkatan Tentra and Lembaga Tabung Haji.
Government-linked firms account for over a third of the market value of the companies in the main index of the Bursa Malaysia stock exchange. The government is in the middle of a restructuring exercise involving the GLCs, unlocking its holdings in many of them to raise capital.

My Comments:
Anil Ambani in negotiation for managing $5 bn Malayasian Public funds.That is Rs 23,000 cr.Now why Malaysian government would like to negotiate with ADAG?Because growth is there........So imagine, if 23,000 cr comes here ......what can be the impact......still I have to write what can be the impact for Obama's stricter norms for US banks?


  1. Hi rajeev,

    I do have question in my mind why these psu are running so fast.if they are cheap. Is'nt that the same money that FII are investing in the equities in which they have major stake. Is this is DII money that moving into psu stocks. I think Indian govt not gonne suck liquidity they make the way through PSU stocks.

  2. I did get ur queestion.....properly..

  3. hi RAJEEV, today came across a guy DEEPAK in MMB ,thought he thinks the same way as u do in picking a stock,do u have a view on BAJAJ HOLDINGS?take care,bye for now.

  4. kitty,
    Yes, he has also his own blog and the style is excatly like me...
    Moreover, he usually visits my blog and pick some of my dark horse pick and write at mmb as well.
    Like say, once I gave a list of dark horse.The list was of only dark horse and that includes stocks like Indocastle Multimedia(now IndoBonito Multimidia),Citi Port Finance, XO Info etc.....and he use to write at mmb all these stocks...saying he can't explain what is there in these stock but something is going to happen in this stocks...but the reality is that he is tracking me and my dark horses and hence he has no reason to explain....but his writing style at his blog is similar to me...
    I do not track Bajaj Holding...

  5. hi rajeev

    any comments on jsw energy results..still managing 30% margins.


  6. Dear Rajeev

    I heard some great news regarding Shriram EPC, iam holding shriram EPC 100 shares enter at Rs 155,can I Increae my share holding for your kind advice Please

    Orient Green Power, backed by PE firms Bessemer and Olympus Capital, could be the first green energy IPO in India.

    In the first green power IPO in India, renewable energy company Orient Green Power Ltd is planning to hit the market with an initial public offering (IPO) by second quarter of 2010. Orient Green, which would become one of the first large independent power producers in the clean energy space to for a listing, is looking for a valuation of around Rs 2,500 crore ($542 million).

    The company could look at diluting up to 20% stake in Orient Green, said sources familiar with the development. Goldman Sachs and UBS have been given the mandate for the proposed listing of the Shriram EPC subsidiary.

    When contacted, a Shriram EPC spokesperson declined to comment. Orient Green Power is involved in building and operation of clean energy power plants like wind, hydro, and biomass. The IPO is expected to be keenly watched by venture capital and private equity community in India. While the investments in the renewable energy segment has picked up over the last few years, the returns potential of this sector in India is still to be proved.

    Orient Green Power was formed as a joint venture between Shriram EPC and Bessemer Venture Partners in 2006, with both the firms pooling in $20 million in equity capital. It was followed by another round of $55 million in private equity funding led by Olympus Capital, which invested from its $250 million Asia Environmental Partners. Bessemer is also a shareholder in Shriram EPC along with other PE players like UTI Ventures.

    According to its website, Orient Green Power has 175 MW in operations across India. It has another projects worth 500 MW at various stages of development, with around 300 MW coming in wind energy and 200 MW in biomass. OGPL along with Dutch firm Leitwind BV is developing 130 MW of wind projects across Eastern Europe and Italy.

    Renewable energy currently account for 8% of India's total power capacity of about 150,000 MW but the government aims to double green power generation to 25,000 megawatts in four years, according to this Reuters report. The alternative energy companies also get subsidised loans to build plants, tax breaks and tariff subsidies. Several PE funds are looking to make the best of this opportunity and have launched funds focused on the clean energy sector

  7. ravi, that is a very excellent margin.

  8. nirash,
    yes,Sriram EPC is a buy.But I think u have not looked at my other call Ennore Coke properly .That too is a sriram EPC CO.See the promoters name in Ennore Coke...