French AMC plans local fund

MUMBAI: French global asset management company (AMC) Shanti Gestion, is looking to launch a fund for investing in Indian companies with high growth potential. A registered foreign institutional investor (FII), with assets worth $450 million under its management, the fund is considering private equity placement. This is likely to be in the pharmaceutical space and may be implemented by the end of next year.

Shanti Gestion has invested about $45 million, or 10%, of its assets, in Indian equities and FCCBs. It holds convertible bonds of large-cap companies like Reliance Communications, L&T, Sun Pharmaceuticals and Amtek India in its portfolio. It has invested in shares of blue-chip companies like Infosys Technologies, Reliance Industries and host of other small- and medium-cap companies.

Eric Mookherjee, CEO, Shanti Gestion, told ET, “We have carefully assessed economic and stock market potential of India, which is much better than China. We see a lot of investment opportunities in small- and medium-cap companies.” he said.

Commenting on the fund’s investment strategy, Mr Mookherjee said that they may look at companies with large land banks. “However, we will be cautious while investing in real estate companies, especially after such a sharp correction in share prices,” he added.

Shanti Gestion currently has 40 Indian companies in its portfolio. The AMC is mainly into portfolio management, hedge fund multi-management and collateralised debt obligation (CDO). French banking major BNP Paribas group holds a 10% equity in the AMC.