Temasek eyes bolder, selective India bets as market matures
(Bloomberg) — Temasek Holdings Pte is looking to place bigger bets on fewer Indian companies to boost returns on its US$50 billion local portfolio in a rapidly growing market where exiting investments has become easier.
'The market is getting bigger and bigger, so we need to concentrate,' said Ravi Lambah, who heads the India operations and strategic initiatives of the Singapore sovereign wealth fund that has been investing in the country for over two decades now.
Its portfolio swelled by US$13 billion or 35 per cent this year on a mix of capital appreciation and fresh investments.
Predictable regulations, steady economic growth and a bullish stock market has had global sovereign funds and pension funds plowing billions of dollars and making handsome returns in the world's most populous nation over the last few years.
And as the market matures, Temasek – which counts Bharti Airtel among its major investments through arm Singapore Telecommunications – is refining its strategy by focusing on fewer themes in a market that has been its star performer over the last decade.
'Today you can buy equities worth a billion dollars and the stock doesn't move much,' said Lambah, who sees big opportunities in areas like consumption, financial services, healthcare, sustainability, transportation and industrials. India's share in the firm's overall portfolio value has been increasing over the years.
Temasek is also looking to partner more with family-run businesses as it seeks to commit billions more into the country.
'When we partner with families, they have longevity of capital,' Lambah said, as Temasek does not have a pre-defined life for its funds.
Early signs of this trend are visible, with Temasek picking up a minority stake in Haldiram Snacks Food Pvt. Ltd in March and its portfolio company Manipal Hospitals acquiring hospital chain Sahyadri Hospitals in Western India. It has also invested in Dr Agarwal's Health Care, an eye care chain, which got listed in January.
India's US$5 trillion stock market has seen a flood of investments from retail investors through equity mutual funds. Last month, inflows through monthly investment schemes hit a record 272.7 billion rupees (US$3.2 billion). Over US$6 billion has been raised from initial public offerings so far this year.
A buoyant equity market gives comfort that 'when we want to exit, the market will give us opportunity,' Lambah said.
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.
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