Singapore's state investor Temasek Holdings has experienced significant gains in India, with three of its portfolio companies—Shiprocket, Milky Mist, and Molbio Diagnostics—surging after their initial public offerings this week [1]. Shiprocket, a logistics company, listed at a 35% premium and closed at 143 rupees ($1.50), nearly 50% above its IPO price. The IPO was oversubscribed nearly 100 times, reflecting strong demand from both institutional and retail investors [1]. Dairy product maker Milky Mist, which listed on Tuesday, traded 40% above its IPO price on Wednesday. Temasek holds over a 5% stake in both Shiprocket and Milky Mist [1]. Molbio Diagnostics, which debuted on Monday, traded at a 26% premium to its IPO price after a drop on Wednesday, with Temasek owning an 8.74% stake [1]. Additionally, Temasek-owned Manipal Health, an Indian hospital chain, is trading at a 25% premium to its IPO price after listing earlier this month [1].
Temasek has deployed nearly $9 billion in India over the past three years and has been a consistent net buyer of Indian equities, even as other foreign investors have been net sellers. Last year, foreign investors sold nearly $19 billion of Indian equities and have continued to be net sellers this year, resulting in outflows worth $24.7 billion through August 19, according to NSDL data [1]. Temasek's optimism contrasts sharply with broader foreign investor sentiment, as a BofA Global Research survey published Tuesday found India to be the least favored market in Asia. Fund managers cited concerns such as lack of artificial intelligence plays, weak growth, slow reforms, and high valuations as reasons for being underweight India [1].
Despite these concerns, Nitin Jain, chief executive and director of Kotak Mahindra Asset Management Singapore, noted that foreign investment flows into India have improved compared to three months ago, suggesting better flows across debt and equity markets in the last two months [1]. Temasek remains constructive on India's structural growth, citing factors such as its large domestic consumer market, growing middle class, formalization, infrastructure build-out, and deepening capital markets. The investor is focusing on these themes by investing in companies across consumer, financial services, and healthcare sectors, and sees increasing potential in industrial companies [1].
CONCLUSION
Temasek's recent successes with IPOs in India underscore its bullish stance on the market, even as other foreign investors remain cautious. The strong performance of Shiprocket, Milky Mist, Molbio Diagnostics, and Manipal Health highlights Temasek's strategic positioning and confidence in India's structural growth. While broader sentiment remains negative, Temasek's continued investments signal optimism for India's future market prospects.