Where India's IT czars invest
They are investing their huge personal wealth in companies that have growth potential, reports Venkatesh Ganesh.india Updated: May 05, 2006 13:24 IST
If you are looking for answers to personal wealth management questions, you could do worse than talk to one of India's IT czars.
They are investing some of their huge personal wealth, created by the IT boom, in companies that have potential for growth.
Wipro's chairman Azim Premji on Wednesday sprang a surprise by investing in Mumbai-based financial company JM Financial through a preferential allotment. Premji, who has recently appointed a personal planner, has been making strategic investments in companies such as Bangalore-based Himatsingha Seide. Premji is also reportedly eyeing a 26% stake in Bangalore-based cardiac hospital Narayana Hrudayalaya, for about Rs 100 crore.
Jerry Rao, former the ex-Citibanker who recently sold off his stake in Mphasis technology, has picked up a stake in Bangalore-based winery Grover Vineyards.
Booming stock markets are also becoming an opportunity to channelise personal investments. Infosys CEO Nandan Nilekani has made a portfolio investment in paints major Asian Paints. While Nilekani's stake may be less than 1% in Asian Paints, it shows the growing apetite for identifying right opportunities for enhancing personal wealth.
Often, it is a personal or business connect to certain sectors that drives such investments. "Premji's investments in healthcare is predominantly due to Wipro's involvement in the consumer goods business such as soaps, "says an analyst from a leading Mumbai-based brokerage house. Satyam's Ramalinga Raju has investments in properties and construction businesses."Raju was in the construction and textiles business prior to Satyam and naturally he understands these businesses quite well," says an analyst.
Most of the investments are backed by long-term plans. Premji has already lined up a Rs 1200 crore fund to invest in growing companies. This is definitely goods news for aspiring entrepreneurs who one day want to emulate their angel investors.