Temasek Holdings, a Singapore state investor, has seen impressive returns from its investments in India, as evidenced by the strong market debuts of logistics company Shiprocket and dairy producer Milky Mist, both of which have surged over 30% since their IPOs.
Shiprocket's shares listed at a 35% premium, closing at 143 rupees ($1.50), nearly 50% above its IPO price, while Milky Mist traded 40% higher on its second day. Temasek holds over 5% stakes in both companies. Additionally, Molbio Diagnostics, which debuted recently, also traded at a 26% premium despite a drop on its second day, with Temasek owning an 8.74% stake.
The firm has invested nearly $9 billion in India over the past three years and remains optimistic about the country's growth potential, contrasting sharply with other foreign investors who have sold off nearly $19 billion in Indian equities last year.
Concerns among fund managers regarding India's market include a lack of AI investments and high valuations, as highlighted in a recent BofA Global Research survey.
Despite these challenges, Temasek continues to focus on sectors like consumer goods, financial services, and healthcare, while also exploring opportunities in industrials and renewables, reflecting a long-term commitment to India's economic growth, which has seen its total exposure rise to $42 billion over the past decade