London Stock Exchange woos Indian companies
16 Apr 2007
New Delhi: The London Stock Exchange (LSE) is eyeing Indian firms seeking to raise funds in overseas markets to list on its bourse in London by relaxing some of its provisions on track record, minimum market cap or net positive earnings for them.
Ibukun Adebayo, manager, international business development, London Stock Exchange, said that since the LSE was targeting young and growing companies, it did not require any track record, minimum market cap and positive earnings. "We believe in common-sense regulation," Adebayo said.
He said so far 21 Indian companies were listed on the AIM with more seeking admission as the requirement for funds could not be fulfilled from domestic resources alone.
In 2006, companies raised $26 billion on LSE''s alternative investment market (AIM) -only $78 million dollars below the amount raised on the US electronic exchange, Nasdaq. He said that Indian and India-focused companies had raised more than 10 per cent of the amount.
Adebayo pointed out that the cost of raising funds at the AIM was significantly lower than on the exchanges in Frankfurt, Luxemburg and the US, which accounted for the preference of many foreign firms for the AIM.
While
Nasdaq and other stock markets stipulated a minimum market
capitalisation of $50 million, AIM offered companies a pool of sophisticated investors
and relaxed regulations to help companies reach their targets taking shareholders''
interest into account.