Tata former executives and investor team up in bid to spur change in Indian firms
Fund is set up to invest in smaller stocks with a view to working with managements to improve in areas such as corporate governance
Mumbai — Some former Tata Group executives have teamed up with a veteran investor to seek to bring change at Indian companies, in a rare attempt to influence management in a country where shareholder activism has largely failed to take hold. Former Tata employees, including Mukund Rajan and Govind Sankaranarayanan, have partnered with Ajit Dayal, the founder of mutual fund firm Quantum Advisors, to set up a fund to invest in smaller stocks with a view to working with managements to help them improve in areas such as corporate governance. The team expects to get regulatory approval for the tentatively named Active Engagement Fund by May and seeks to raise and invest $1bn in the next three years, Sankaranarayan said in an interview in Mumbai. The fund expects to begin investing from September. Sankaranarayan, who spent more than two decades at Tata Group, says the fund deliberately shunned the activist moniker and positioned itself as an environmental, social and governance (ESG) vehi...
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