The Hindu Business Line : LSE scouting for listings from Indian corporates

Mr Hugh Sandeman, Head of Business Development (left), and Mr James Woodley, Manager (business development), London Stock Exchange (India), at a press conference in Chennai on Friday. — Shaju John

Chennai , April 8

THE London Stock Exchange (LSE) is marketing itself to companies in India, China and Russia inviting them to list with it.

At a press conference here today, representatives from the stock exchange said that it was looking at the three countries which are expected see major economic growth.

In India, the stock exchange would target companies across the entire spectrum of industries.

Now, about 20 Indian companies are listed on the London Stock Exchange and more were getting on board. These were all large companies in information technology, financial services, power and automotive industries.

Indian companies traded over $12 billion in 2004, a 40 per cent growth over 2003, making India one of the largest emerging markets for LSE.

In addition to the large players, the stock exchange hopes to widen its reach to attract smaller companies. It is setting its sights not just on the metros but also on the smaller cities with large industrial base.

London Stock Exchange has a main market that hosts companies with large market capitalisation and extended track record, and AIM for the smaller and new players.

Mr Hugh Sandeman, Head of Business Development for India, International Business Development, said that he would be meeting with companies large and small. Listing on the LSE would give these companies access to finance and an international profile that would support them in their growth plans.

Mr James Woodley, Business Development Manager (India and Australia), said that increasingly companies in various countries were listing on LSE. It was the largest among the European stock exchanges with 2,396 domestic companies, which accounted for an equity turnover of $4,447 billion and 469 international companies that accounted for equity turnover of $4,614 billion on the main market and 1,065 companies listed on AIM contributing to an equity turnover of $34.8 billion.

The distinction between the main market and AIM was primarily on regulatory systems and size. The main market supports established players with a long track record and a market capitalisation ranging from $50 million to several billion dollars. The UK Listing Authority governs them and the systems are elaborate and stringent.

AIM supports new players typically with a market capitalisation of $5million up to $150 million. The regulatory systems are governed by the LSE itself and are flexible.

Mr Woodley described it as an entry point for new players to the main market. "AIM is a nursery for the main market," he said.

LSE is an ideal platform for ambitious companies looking for additional funds, diversifying its investor base and raising the company's profile to back overseas growth. If there are 2,000 foreign institutional investors in India, there are 5,000 available for companies listed on the LSE, he said.

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