UTI mutual fund is set to launch a second offshore equity fund to raise USD 300 million in Dublin next month, shortly after mopping up USD 300 million through a similar fund last year which tapped vast European investments.
"We see a potential to get a USD 1 billion," he said when asked about the scope of raising funds to support investments in India.
UTI mutual fund has already raised USD 300 million through a similar fund launched in Dublin in December 2014, which tapped the vast European investments.
Puri also estimated USD 2 to 3 billion investment flow into India’s insurance sector in the next six to 12 months after?the Upper House of Parliament approved a bill increasing foreign investor participation in the sector up to 49 per cent from 26 per cent previously.
He said India is gaining more foreign investors’ confidence as the government led by Prime Minister Narendra Modi has given much clearer indication on the path the country is taking.
"The government has laid out the agenda for the next three years which will undoubtedly bring back the capital investment into the country and create opportunities for foreign investors," said Puri.
"That is why we are here today for a dialogue with foreign investors to start telling the story about India more clearly," said Puri who delivered a keynote address at the forum.
Puri also said that he expects consolidated Foreign Portfolio Investment (FPI) in India to double on the year in the current fiscal year 2015-16, given the strong economic fundamentals and the government’s plans to disinvest from the public sector units.
He estimates USD 30 to 40 billion in FPI, a consolidation of Foreign Direct Investment and Foreign Institutional Investment in 2015-16 year.
He cited the government’s plan to disinvest PSU for Rs 70,000 crores (over USD 11 billion) as well as an anticipated initial public offers (IPOs) by some of the leading Indian companies, especially those in the infrastructure sector.
The disinvestment would attract 30-50 per cent investment, he added.
He expects an increasing number of local IPOs in the future though such fund raising exercises have been slower in the recent years.