The ongoing tensions between India and Canada over the killing of Khalistani terrorist Hardeep Singh have reached a peak. This could affect trade and investment between the two countries at a diplomatic level. Canadian pension funds have invested heavily in many companies in India.
India and Canada, which have a great business partnership, are currently under tension. A few days ago, Canada announced, without explanation, that it was ending its trade mission with India. India also expelled Canada’s top diplomat Olivier Sylvester. The ongoing tensions between the two countries on a diplomatic level are now showing up in the field of trade as well. Canada Pension Plan Investment Board (CPPIN) has invested in several companies in India. These tensions are likely to impact these investments as well.
Rs. 1 Lakh Crore Investment
The list of Indian listed and unlisted companies that have received investment from the Canada Pension Fund Investment Board (CPPIN) is long. Many companies are involved, from Kotak Mahindra Bank, online food delivery platform Zomato, online payment system platform Paytm to tech giant Wipro. CPPIN’s total investment in these Indian companies is approximately Rs. 1 Lakh Crore is more.
Kotak Mahindra Bank
A report citing investment data from the Canada Pension Fund Investment Board revealed that CPPIN has made a major investment in Kotak Mahindra Bank, a major player in the Indian banking sector. CPPIN’s equity in this bank is over 2 percent and as per investment bank shareholding pattern around Rs. 9500 crores is around.
In addition, private bank ICICI also received investment from the Canada Pension Fund. According to the report, the value of the Canadian pension fund’s investment in U.S.-listed ICICI stock is approximately $10 million.
The Canadian Pension Fund has invested in online food delivery platform Zomato. The Canadian pension fund has about a 2.37 per cent stake invested in Zomato, according to its June share structure. Moreover, the current stock price is 207.8 billion.
Paytm, an online payment system platform led by Vijay Shekhar Sharma, is also one of the companies in which CPPIN is investing. The Canadian investment fund invested 1.76% stake in Paytm as an investor. Based on the recent stock price, it is about 97 billion.
The Canadian pension fund invested about $22 million in the US-listed shares of Infosys, which operates in technology across the world, including in India. Additionally, the fund’s investment in Indian company Wipro, one of the largest companies in the technology sector, is worth approximately $11.92 million based on its US-listed shares.
Indian fashion and beauty brand Nykaa also has a Canadian fund in its list of anchor investors. The Canadian fund is an anchor investor and has invested around 1.5% in Nykaa, valuing its investment based on share price at around Rs. 62 billion.
CPPIN has invested heavily and purchased a stake in domestic logistics service provider Delhivery. As of June 2023, the fund’s total stake in Delivery was 6%. The acquisition took place in 2022, when the company entered the stock market. If you look at this stock at its current price, it is more than Rs.180 billion.
A Canadian pension fund also invested in the company. Based on a 2.18% stake of Rs. The investment cost exceeds 100 billion crores. Talking about other companies, CPPIN has invested in many large companies including Piramal Enterprises or has contracts in various sectors.
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Disclaimer: This article is for informational purposes only, exclusively written and published by IntraSource. The information sourced from various trusted platforms, mainly “Immigration, Refugees and Citizenship Canada (IRCC)” and should not be considered as legal or professional advice. IRCC’s requirements may change, so consult lawyer/s and receive a professional advice before making decisions or applications.