The Hindu Business Line : London SE AIMs for small Indian cos

THE London Stock Exchange (LSE) is aiming to enlist small and even unlisted Indian companies for its AIM platform. Ms Tracey Pierce, head of International Business Development of LSE, told reporters here today that recently it has succeeded in enlisting eight Russian companies and one Chinese company on the AIM.

In simple terms, the facility entails listing including primary listing of a company in its early stage.

Mr James Woodley, business development manager of LSE for India and Australia, said two LSE nominated advisors - Grant Thronton and KPMG - were actively scouting for small private entities and corporates seeking access to foreign capital or raising capital in foreign currency.

A UK-based broking firm is also expected to set up shop in India to help entities in seeking admission to the AIM platform.

AIM does not require past trading record, nor does it specify a minimum size of public holding as an entry criterion.

An entity seeking listing on the AIM needs to appoint and retain a LSE-nominated advisor. It is also required to appoint a broker.

The admission document is vetted only by the nominated advisor, who stays on with the company as long as the listing continues.

LSE has a total of 72 such nominated advisors. In case of an unlisted entity, the nominated advisor also prepares the initial public offering and carries out the merchant banking operations for the issuer.

According to Ms Pierce, two Indian companies have listed their depository receipts on the LSE during 2004. A total of 18 Indian companies' GDRs are listed on the LSE.

Ms Pierce admitted that some of the Indian GDRs were not very actively traded because of the poor investor relations by the issuers.

However, LSE is prodding a few Indian outfits to graduate to the retail depository receipts segment, which required higher compliance. The GDR segment is meant only for institutional players.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Madhucon board okays pref allotment

CBDT prescribes forms for rebate on STT

Bears march ahead

London SE AIMs for small Indian cos

Every seventh stock traded hits lower circuit

Sensex still in correction mode; sheds 120 points

Pharma stocks: Excise duty talk keeps them ill

Trend reversal likely in HPCL

Reddy moots capping FII inflows — But not in favour of the move at this stage

The surge and participatory notes

`No plan to tax inflows'

What they say

Bear hug led by IT, pharma and banking stocks