The Hindu Business Line : LSE targets 10 mid-cap Indian cos for listing

The listing proposition is tailored for venture capitalists who are seeking exit option as well as for companies aiming to raise small capital and gain global visibility, Mr James Woodley, Business Development Manager for India and Australia, said.

"About four-five companies are in the process of deciding on how to structure their offering to maximise gains," Mr Woodley said. Declining to detail a timeline for possible listing of these companies, he said that on an average a company takes four to six months to get listed on AIM.

These companies range across technology, biotech and food processing industries. Many of them are locally listed and seek international exposure and capital as currency for merger and acquisition, Mr Woodley said. However, most of these companies would seek secondary listing to start with. "Once the momentum builds up, perhaps primary listings will follow," he added.

Though GDRs of 18 Indian companies are currently traded on the London Exchange, none of them are primary listing. The average mop-up through listing on the AIM is $10 million-$80 million.

Flexible entry criteria designed for smaller and medium companies coupled with the common trading platform of the London Stock Exchange are likely to boost local companies' appetite for global listing, he added.

The London Stock Exchange has chosen China, India and Russia as its future growth markets and has stepped up advisory and brand building exercises in these economies to attract new listings. The success of Vedanta Resources is likely to propel Indian firms for possible listing on the exchange, he added.

"Once you are listed on AIM, after two years you can move to the main market," Mr Woodley said. Currently, 819 companies are listed on AIM of which 69 are international firms with a market capitalisation of $39 billion spanning across 32 sectors.

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