Singapore's sovereign wealth fund GIC is planning to establish an India-dedicated public market fund.
The fund will be the first dedicated pool of capital for domestic equities set up by a large global financial institution, The Economic Times reported.
While GIC has not yet fixed the size of the fund, it is likely to allocate $2-3 billion, the report added.
Moneycontrol could not independently verify the story.
GIC has hired Aditya Agarwal, who was with WestBridge Capital, to head its new fund as managing director and is targeting a mid-2021 launch, The Economic Times reported. A team of four-five executives, including Agarwal, will be setup for the fund.
GIC and Agarwal declined to comment when contacted by the paper.
"The India-dedicated fund or specific allocation for public market will help these global funds deploy more money into mid-cap equities," a source told the publication.
GIC, the world's sixth-biggest sovereign investor, has assets worth $440 billion.
In India, GIC has invested in HDFC, ICICI Bank, Bandhan Bank and Bharti Airtel. The sovereign fund also recently made a Rs 5,512 crore investment in the retail unit of Reliance Industries.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.