The Hindu Business Line : Trading volume doubles for Indian GDRs at London Stock Exchange platform

Home Page - Stock Markets
Markets - Stock Exchanges
Corporate - Overseas Borrowings
Trading volume doubles for Indian GDRs at London Stock Exchange platform

‘More Indian companies coming to the LSE this year’

T.E. Raja Simhan

Advertisement

Chennai, Feb. 20 Total trading volume of Indian companies on the International Order Book (IOB), a trading platform for depository receipts of the London Stock Exchange, more than doubled to $12 billion in 2007 compared with $5.2 billion in 2006.

Fastest growing

In 2007, a total of $437.8 billion of Global Depository Receipts (GDRs) were traded on IOB with Indian GDRs accounting for 3 per cent. Russia had the highest percentage of 82 per cent, followed by Egypt with 4 per cent. India was also the fourth fastest growing IOB segment during 2007 behind Israel, Baharin and Turkey.

The previous annual bests for India GDRs were $5.4 billion in 2005 and $5.2 billion in 2006. The IOB is the only liquid trading platform for GDRs worldwide.

There is negligible GDR trading on any other European stock exchange, Mr Ibukun Adebayo, London Stock Exchange’s head of business development, India and international, told Business Line on the sidelines of a workshop on London Capital Markets Road show 2008.

The commonwealth Business Council with the London Stock Exchange organised the workshop for Indian entities planning to raise capital in the London market.

Surana & Surana Internal Attorneys is partnering with the council to bring this programme to South India.

GDR programmes

Mr Adebayo said in 2007, three Indian companies raised a total of $764 million on the exchange’s Professional Securities Market; one focused fund raised $182 million on the Main Market and nine India centric companies have floated on Alternative Investment Market raising a total of $846 million.

A further five companies listed on Luxembourg admitted their GDR programmes worth a total of $1.2 billion to IOB for trading, he said.

This year too, the volume for Indian GDRs could be similar to 2007, he said. At present, there are 25 Indian companies listed in the UK and admitted to the LSE.

A further 14 Indian companies that listed on other international jurisdictions or stock exchanges trade on the LSE. And, there are now 22 Indian entities on AIM.

“We hope to have more Indian companies coming to the LSE this year,” he said.

More Stories on : Stock Markets | Stock Exchanges | Overseas Borrowings

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