Kotak to raise $300mn via offshore funds

Kotak Mahindra Bank is raising a total of $300 million through three separate offshore funds "" an infrastructure fund, a Shari'ah fund for Muslim investors and a multi-cap fund for European investors "" to tap the growing appetite of global investors.

The Mumbai-headquartered private sector financial services major has collected about $150-175 million through an infrastructure fund, which is the first such fund launched overseas for investments in infrastructure companies listed on the Indian stock markets. The fund closed its initial mobilisation on November 9.

Kotak Mahindra Bank, which manages nearly $2 billion overseas funds in Indian equity markets through its international subsidiaries, is also in the process of marketing a European regulated 'Kotak India Multi-cap Fund', which will eventually become the bank's flagship fund in India, said Paul Parambi, head of its international business.

"In the initial share offer, we hope to raise $50 million. Over the next few years, it will be our flagship fund managing a billion dollar or more in assets," Parambi said. "This fund will be our platform for Europe."

He said the bank's international business, which caters to over 400,000 institutional and HNIs is raising $50 million through a Shari'ah fund from West Asian investors.