Thursday, January 24, 2008

Kotak's Gems Fund To Go For Private Placement, Pre-FPOs

MUMBAI: Kotak Securities has launched a closed-ended fund, Gems, in which 30 per cent of the corpus will be allocated to private placement or pre Follow on Public Offering (FPO), a top company official said.

"Gems will invest in small, medium or large cap companies that could become gems in future from their current price levels. It will allocate 30 per cent of the fund into private equity or pre-FPO placement in listed companies," Kotak Securities Senior Vice President PMS Kunj Bansal told reporters.

The portfolio manager will have the flexibility to invest in the listed companies with strong growth prospects through private placements or pre-FPO route to generate capital appreciation in medium to long term, he added.

"We are targeting to raise about Rs 300 crore till February 10. Of this, 30 per cent or Rs 90 crore would be marked for private placements or pre-FPO investments," Bansal said, adding the lock-in for the fund is 30 months.

The firm hopes to receive good participation in 'Gems' from its existing PMS client base.

Kotak Securities currently offers portfolio management services to about 4,500-5,000 families.

The fund will be a diversified scheme investing across the sectors with a predominant bottom up approach. It will shift across investment themes to participate in multiple growth drivers of the economy.

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