Enam To Launch An Infrastructure Fund

Enam Securities Ltd is launching a PE fund for investments in the Infrastructure sector and has hired Jayesh Desai from Ernst & Young to head the fund. The fund will be set up as a subsidiary of Enam Holdings.

A Goldman Sachs report projected a need of $1.7 tn for funding infrastructure projects while the government had estimated spending of $500 bn between 2007 and 2012 and $500 bn on infrastructure encouraging brokerages and fund houses. Despite the opportunity, PE funds have found it hard to identify profitable projects.

Enam Securities Ltd – founded in 1984 – by Manek Bhanshali, Nemish Shah, Vallabh Bhanshali and Jagdish Master offers a bouquet of financial services including Asset Management, Equity Broking and Investment Banking services. It has a network of over 5,000 dedicated franchisees.

There are number of infrastructure funds operating in India including SBI – Macquarie fund, IDFC India Infrastructure Fund and Infrastructure & Growth Capital Fund among others.

PE Investments in Infrastructure

Infrastructure focused fund raising activity picked up in 2009 after the Union budget of 2009-10, when GoI emphasized on the need to focus on infrastructure development in India. It planned to increase infrastructure spending from 4-5 %of GDP to 9% of GDP by 2014.

Thus several infrastructure funds were launched in 2009. In July, UTI AMC partnered with HSH Nordbank and Kuwait's Noor Financial Investment Company to launch a $500mn infrastructure fund named India Infrastructure Development Fund.

In November, Kotak Mahindra (UK) also launched the India Infrastructure and Realty Fund for European investors. The fund will invest in listed shares and derivatives linked to shares of infrastructure companies.

Transaction Reference: ET

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