InvestorQ : What is the new fund that is proposed to be launched by Anil Agarwal of Vedanta supposed to do?
Rutuja Nigam made post

What is the new fund that is proposed to be launched by Anil Agarwal of Vedanta supposed to do?

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1 week ago
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Anil Agarwal of Vedanta has recently announced that he was teaming up with London-based firm Centricus to create a massive $10-billion fund. This fund will invest in the Indian government selling stake in various public sector undertakings. Centricus is a global investment firm, that largely specializes in investing in commodity stories and partners with large corporates to add a business flavour to its decisions.

Agarwal, the executive chairman of Vedanta Resources, has also tweeted to this effect about the proposal to float an investment fund for Indian PSUs in collaboration with Centricus fund. Clearly, the group is relatively excited with the opportunities thrown up by the Union Budget's strong focus on disinvestment and would like to participate in the exercise. Budget had proposed to expand more names to the privatization list.

Buying PSU companies that are resource rich and cash rich are nothing new for Agarwal. He hear earlier bought a stake in Hindustan Zinc and BALCO from the government while he had bought Sesa Goa and Cairn from private parties. For Vedanta Resources being a globally diversified natural resources company, this offers an opportunity to pick up attractive stakes in underpriced government stocks with STOP valuations that are substantially higher.

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