Excel India Trust announced that it has completed an initial public offering of 4.5 million units of the trust at a price of $10 per unit, yielding gross proceeds of $45 million. The units began trading on the Toronto Stock Exchange today under the symbol EXI.UN.
The trust has been designed to provide investors with the exposure of equity securities of Indian companies. It uses an efficient tax structure designed to minimize Indian withholding taxes on capital gains and avoid certain investment restrictions that would otherwise apply to foreign investors investing in India. The Trust's investment objectives are: to provide holders of units with quarterly distributions (initially targeted to be 12.5¢ a unit per quarter or 5% per year based on the offering price of $10 a unit); and long-term capital appreciation.
It seems like an interesting play for those who want to invest in India, but don't have the expertise / information / $ to make direct investmetn in Indian corporations feasible. I know I'll be taking a closer look.
