InvestorQ : Is it true that Temasek has doubled its investments in India even in tough times?
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Is it true that Temasek has doubled its investments in India even in tough times?

1 month ago

Temasek, the state owned sovereign investor of Singapore, is one of the most formidable investors in India. Out of its total global portfolio of $297 billion, nearly $16 billion is invested in Indian equities. However, what is more important is that the portfolio has doubled in the last five years to $16 billion. Temasek confirmed that they continued to build on their exposure to India and even added to their investments in technology firms and other listed companies.

One has to only look at the numbers to appreciate this fact. Temasek’s India portfolio grew from $9 billion in FY20 to $14 billion in FY21 and to $16 billion in FY22. On a macro basis, the portfolio of Temasek in equities touched $297 billion across the world and India is about 5.5%. Temasek was invested in many of the digital and other new age IPOs last year like Zomato, Policybazaar, CarTrade and Devyani International. However, a number of these stocks are down 30-50% from the issue prices.

But what is most interesting is that Temasek continues to be positive on India at a time the fund has turned cautious globally. This positive enthusiasm is in sharp contrast to the scepticism of most FPIs that have sold more than $35 billion in the last 9 months in Indian equities. Temasek likes India being more inward looking with a strong franchise of domestic consumption. That makes India defensive. It still sees a lot of opportunities in the Indian context and is not overtly worried about the sell-off in digital stocks.