Singapore's state investment firm Temasek Holdings is reaping impressive rewards from its Indian portfolio, with three of its backed companies debuting on the stock market this week, all posting gains exceeding 30%.
Logistics firm Shiprocket went public on Wednesday, opening with a 35% premium and closing at 143 rupees (approximately $1.50), marking a near 50% jump from its IPO price. The offering was heavily oversubscribed, attracting 100 times more bids than available shares, driven by strong demand from both institutional and retail investors.
Dairy producer Milky Mist, which listed on Tuesday, saw its shares trade 40% above its issue price during Wednesday's session. Temasek holds more than 5% stakes in both of these companies.
Molbio Diagnostics, which made its market debut on Monday, experienced a slight pullback on Wednesday but still trades 26% higher than its IPO price. According to data from the Bombay Stock Exchange, Temasek owns an 8.74% stake in the diagnostics firm.
Adding to the winning streak, Manipal Health, an Indian hospital chain backed by Temasek that listed earlier this month, currently trades at a 25% premium over its offer price.
Over the past three years, Temasek has invested nearly $9 billion in India. During this period, while numerous foreign investors have been persistently net sellers of Indian equities, Temasek has consistently remained a net buyer.
"On a decade-long horizon, India is our best-performing market in terms of returns," a Temasek spokesperson said. "We continued to net purchase Indian listed companies last fiscal year, selectively adding to positions in high-conviction holdings amid market volatility."
Temasek's bullish stance on India stands in sharp contrast to other overseas investors. Data from the National Securities Depository Ltd (NSDL) shows foreign investors sold Indian stocks worth nearly $19 billion last year, and have remained net sellers for most of this year through August 19.
A fund manager survey released Tuesday by BofA Global Research ranked India as the least preferred market in Asia. Fund managers cited the lack of artificial intelligence-related investment targets, weak economic growth, slow reform progress, and elevated valuations as primary concerns driving institutional underweight positions.
Nitin Jain, CEO and Director of Kotak Mahindra Asset Management (Singapore), said the survey serves as "a clear warning to Indian policymakers that global investment enthusiasm for India has already hit low levels." He noted, however, that current foreign capital inflows into India have improved compared to three months ago, with both equity and bond flows showing signs of recovery over the past two months.
Temasek said it maintains a positive outlook on India's structural growth story, supported by the country's massive domestic consumption market, expanding middle class, ongoing economic formalization, infrastructure development, and deepening capital markets.
The spokesperson noted that Temasek has positioned its portfolio around these trends across consumer, financial services, and healthcare sectors, while also identifying increasing investment opportunities in industrials, infrastructure, and renewable energy. Temasek disclosed that its total exposure in India now stands at $42 billion, having quadrupled over the past decade.
Where to begin: Temasek's recent IPO successes highlight the firm's long-term conviction in India's growth trajectory, even as global sentiment toward the market remains cautious.