Indo-Canadian relations have reached a critical juncture as Canada on Monday expelled a high-ranking Indian diplomat, citing allegations of foreign interference in the assassination of the Khalistan Tiger Force Chief on Canadian soil. Responding to the development, India on Tuesday expelled a Canadian diplomat with a five-day notice to leave the country. These diplomatic moves could have far-reaching consequences, particularly affecting trade and investment ties between the two nations.
As of June 30, 2023, Canada Pension Plan Investment Board (CPPIB) manages over $430 billion in assets under management for the Canada Pension Plan on behalf of 21 million Canadians. CPPIB has sizeable investments in Indian stocks and any further deterioration in Indo-Canadian relations can have a bearing on these investments.
CPPIB has made significant investments in India, both in listed and unlisted companies. According to recent filings, these investments collectively amount to over Rs 1 lakh crore. Let's take a closer look at some of the Indian companies where the Canadian Pension Fund holds stakes, based on the June quarter shareholding pattern.
CPPIB invested 1.15 billion Canadian dollars ($0.86 billion) in Kotak Mahindra Bank in 2015. Based on the most recent shareholding data, this stake currently stands at 2.68 per cent. Additionally, the Canadian Pension Fund divested a 1.66 per cent stake in the bank in June this year. The remaining stake, at Monday's closing price, holds a value of Rs 9,582 crore.
CPPIB was one of the anchor investors in Paytm IPO. As of the June quarter shareholding pattern, the Canadian Pension Fund maintains a 1.76 per cent stake in Paytm, currently valued at Rs 973 crore.
As per the June quarter shareholding pattern, CPPIB holds a 2.37 per cent stake in the food delivery aggregator. Its investment in the Gurgaon-based firm is valued at Rs 2,078 crore based on Monday's closing price.
As of the June quarter, CPPIB maintained a noteworthy 6 per cent stake in the logistics platform, Delhivery. At Monday's closing price, this stake is valued at Rs 1,878 crore.
CPPIB's stake in ICICI Bank, one of country's leading private lenders, is valued at nearly $10 million, according to recent filings.
Formerly known as Bharti Infratel, CPPIB holds a 2.18 per cent stake in Indus Towers as of June 30, with the investment valued at Rs 1,085 crore, based on Monday's closing price.
Similar to Paytm, CPPIB was also an anchor investor in the IPO of the online beauty retailer Nykaa. As of June 30, CPPIB owns a stake worth 1.47 per cent in Nykaa, valued at Rs 625 crore at Monday's closing price.
The Canadian Pension Plan Investment Board holds stakes in the US-listed shares of IT giants Wipro and Infosys, with a valuation close to $11.92 million and over $21.7 million, respectively, based on the latest 13-F filings.
In addition to these notable investments, CPPIB has forged strategic alliances with various Indian entities, including Piramal Enterprises and the Shapoorji Pallonji Group, for renewable infrastructure investments and office building acquisitions. Their collaborations also extend to projects with L&T Infrastructure Development, further emphasising their significant presence in India's investment landscape.