State Bank of India-backed PE firm Oman India raising $300m for second fund

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Private equity firm Oman India Joint Investment Fund (OIJIF) is in the process to raise $300 million (about Rs 1,980 crore) for its second fund, said a report in The Economic Times.

Oman India, an equal joint venture between Oman’s sovereign wealth fund State General Reserve Fund (SGRF) and India’s largest lender State Bank of India, has already got commitments worth $200 million from both the anchor investors for the new fund, the report said.

The firm is also in talks with several third-party institutional investors located in India and overseas and is expected to close the new fund by the first quarter of next year. The new fund will aim at acquiring bigger stakes against capital investment in portfolio companies across sectors including consumer, manufacturing, engineering, biotechnology, financial services and specialised retail.

Formed in 2010, Oman India raised $100 million for its first fund in 2011, which has already been invested across seven deals. It is currently invested in companies including commodities exchange NCDEX, defence electronics maker Indus Teqsite, battery maker HBL Power and agro chemicals GSP Crop Science.

The private equity recently exited its investment in publicly-traded Solar Industries, a maker of explosives and detonators, for Rs 240 crore at Rs 3,100 per share. It had invested Rs 72 crore in the company in September 2012 at Rs 930 per share.

Some of the other sovereign funds investing in India include Government of Singapore Investment Corp., Singapore’s Temasek Holdings Pvt. Ltd, Abu Dhabi’s Mubadala Development Co. and the Abu Dhabi Investment Council.

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