)
This is the first time in Fairfax’s 30-year history that it is launching a new company. Fairfax India, which will focus on “the potential of Indian and Indian businesses”, has filed a prospectus for a public offering and has already received commitments worth $300 million from cornerstone investors. “We believe India will be transformed by the business-friendly government of Prime Minister (Narendra) Modi,” said Watsa, chairman of Fairfax Financial and Fairfax India.
“With our resources and expertise in India, developed through the past 15 years, we will be well positioned to make excellent significant long-term investments in businesses, with experienced and ethical management teams,” added the India-born Watsa, known in investor circles as Canada’s Warren Buffett.
This year, the Indian market has rallied about 35 per cent, emerging as one of the favourite destinations of foreign investors. So far this year, foreign institutional investors have pumped in about $15 billion into Indian stocks, the most among emerging markets.
The Fairfax India offering would be managed by RBC Capital Markets, BMO Capital Markets, CIBC, Scotiabank and National Bank Financial, the company said in a statement. Fairfax India would focus on generating long-term returns by making equity and debt investments in Indian companies or other businesses with significant ties to the country, the statement added.
Fairbridge Capital, an affiliate of Fairfax Financial, has holds majority stake in Thomas Cook India. It also holds 26 per cent stake in the unlisted ICICI Lombard General Insurance, a leading private general insurer.
