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From the Opalesque Team:

Kotak Mahindra (U.K) Ltd yesterday announced the launch of the Kotak India IPO Investment Fund, a fund which will seek to invest mainly in Initial Public Offerings and subsequent Public Offerings of companies in India.

There is expectation that the Indian equity markets shall witness increased activity in the area of Initial Public Offers in the months to come and the fund shall seek to capture these opportunities.

The New York Times reported late last week that as the stock market was recovering, corporate India was taking advantage of the opportunities and "lining up a series of initial public offerings to tap into the rising confidence of foreign and domestic investors in the Indian market." The S&P's Nifty stock index is up about 80% since early March. Dow Jones said on Monday that Oil India Ltd., wholly owned by the Indian government, was planning a $500m domestic IPO in September, for example.

According to Kotak, the key advantages which the fund shall offer include (1) Investment option for foreign investors who cannot normally participate directly in such IPOs. (2) Efficiency for Non Resident Indians (NRI) as only 10% of the total subscription is to be committed through the Fund initially (as opposed to 100% commitment when ......................

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