Indian companies may get listed on London Stock Exchange

Saturday, March 13, 2010, 4:34 by Business Editor

Indian companies are now looking westward with a goal. The lure, of late, comes from the London Stock Exchange (LSE).  Getting listed on the London bourse is high on the agenda of Indian firms to the extent that they are in fact sort of clamoring for getting on to the British bourse in the immediate future.

Evincing keen interest in getting listed on LSE comes as part of Indian companies’ plans toward immediate expansion owing to the opportunities extended in terms of large merger and acquisition possibilities in London as well as in the other major regions of Europe.

A news report quoting LSE officials says that the London Stock Exchange is also foreseeing a hugely visible growth in Indian equity offerings on the bourse. The future looks bright for them with regard to the expectations of the Main Market and Alternate Investment Market (AIM) that they will be able to lure Indian majors from a variety of segments. The prominent sectors predicted to have their players climb on the LSE listings include energy, manufacturing and financial services. The Indian companies, in the meanwhile, are eyeing to garner many an advantage from the liquidity and profile that could come as a result of a listing in London SE.

Believe it or not, the immediate future, could be witness to London fuelling the growth goals of many an Indian company. “On offer is the world’s largest pool of international investment capital, highly liquid and well regulated markets, and a worldwide profile,” an official with the LSE has been quoted by a news report as saying.

The current scenario itself waxes eloquent on the goals attained by the Indian players who have managed to get listed on the LSE.

As many as 66 Indian or India-focused companies are currently part of LSE’s markets, and have together raised $5.6 billion. For instance, companies such as Vedanta, which has garnered the largest Indian premium listing in London with a $1 billion issue in 2003, are success stories in this domain. Besides, Tata Steel’s $500 million issue in 2009 was the largest global depository receipt (GDR) listing. Even when the global financial scene was in a shambles as a result of the slowdown, four Indian companies were at various stages of listing in the summer of 2008. Two among them would get listed this year.

To push the numbers even further, LSE officials and advisors are on an India tour organizing workshops that bring to the fore a variety of capital raising instruments, markets and trading platforms that the London SE has on offer.

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