Oman-India fund raises $220m for new offering

By Business Reporter — MUSCAT: Jan 14 – The Oman India Joint Investment Fund (OIJIF) has raised $220 million towards the first close (tranche) of its new fund of $300 million, according to a report in the Economic Times. The anchor investors in the new fund are State General Reserve Fund of Oman and India’s largest bank, State Bank of India. The fund will deploy capital in growth companies and look at investing around $20-40 million in each deal, the newspaper quoted OIJIF Chief Executive Srinath Srinivasan as stating. “OIJIF Fund II is targeting a corpus of $300 million by the end of 2017,” Srinivasan further noted.

The first fund, set up in 2011, was of $100 million. “We will look to make larger ticket size investments in the range of $20-40 million from this fund,” he said.  From its first fund, OIJIF invested in companies such as ING Vysya Bank, S Solar, Crop Science, Indus Teqsite, NCDEX, HBL Power Systems and SSIPL. In 2015, OIJIF sold its stake in Solar Industries India Ltd for about Rs 240 crore. OIJIF joins the club of fund managers that have successfully raised capital in a sedate fund raising market. In the last twelve months, about 35 India dedicated funds have raised more than $5 billion from global and domestic institutional investors .

Some of these India dedicated funds that have been able to get commitments from investors are Gaja Capital, Renuka Ramnath’s Multiples PE ($690 million), IDFC PE’s first close of its fourth fund ($100 million), Venture Fund Sequoia Capital’s $920 million fund, Accel India’s $450 million fund among others.