The Private Banking division of Emirates NBD, a leading bank in the region, announced today the launch of the “India SME Fund,” which offers clients access to investment opportunities in India’s fast-growing Small and Medium-sized Enterprises sector (SME). The “India SME Fund” will focus on the high growth sectors of infrastructure, education and healthcare. Subscription to the fund, which was launched recently in Dubai, will be open until November 14, 2012.
The “India SME Fund” has been launched in association with Aditya Birla Sun Life Asset Management Company Pte Ltd (ABSLAMC), the fourth largest asset management company in India and a part of the India-based US$40 billion Aditya Birla Group.
A closed-ended equity fund focusing on small & mid-sized listed companies in India, the India SME Fund has a maximum maturity of 4 years. It offers Emirates NBD Private Banking clients the opportunity for private investment in public equity or (PIPE shares) in India’s SME sector. The fund’s objective is to achieve long-term capital growth through primary or secondary market purchases for a concentrated portfolio of primarily small & mid-cap companies in India that are either listed or in the pre-IPO placement stage.
“Small and medium businesses are centres of innovation and the backbone of industry growth in India, but this sector is not easily accessible due to thin liquidity,” said Mark McFarland, Chief Investment Strategist, Emirates NBD Private Banking. “We are pleased to launch the India SME Fund,in partnership with Aditya Birla Sun Life Asset Management Company, to offer our Private Banking clients a rare opportunity to participate in one of Asia’s most exciting asset classes. The fund will also enable clients to benefit from the recent appreciation of the Indian rupee.”
The India SME Fund has been launched at an opportune time. India-based SMEs currently employ 60 million people and create 1.3 million jobs per year, contributing approximately 45% of industrial output and 40% of Indian exports. In 2012, the contribution of SMEs to India’s GDP is expected to reach 22 per cent, up from 17 per cent in 2011.
“Small and medium enterprises are key to economic growth, particularly in emerging market economies,” said Bharat Banka, Managing Director& Chief Executive Officer, Aditya Birla Group. “We are pleased to launch this fund on an exclusive basis for Emirates NBD, the leading UAE-based financial services organisation, and offer the bank’s clients access to high growth investment opportunities”.