Nasdaq wooing Indian companies

The Nasdaq Stock Market, is expecting around five to 10 Indian companies to be listed on the US stock markets in the next 12-18 months.

Nasdaq is, therefore, wooing a majority of these likely Indian contenders for Nasdaq listing. Infosys, Sify and Rediff are the only Indian companies that are currently listed on the Nasdaq.

The electronic stock market, Nasdaq, is targeting to list about 170 companies, from countries outside the US in the next 3-5 years. It currently has about 3,300 companies listed on the exchange with 65 being from the Asia-Pacific region.

Speaking to the press, Stuart Patterson, senior managing director, Asia Pacific, Nasdaq, said, "We have met about 25 Indian companies in the last couple of months and some of them have shown keen interest," Patterson said.

Although he refused to divulge the names of the Indian companies that are drifting towards a Nasdaq listing, he added that the companies that they have met, have been from the pharma, biotech, IT and financial services sector.

"The only confirmed news that we can give is about the BPO vendor, EXL Services Holdings," Patterson said. EXL is planning to raise about $75 million through the Nasdaq listing and according to Patterson, the listing is likely to be in the next three months.

"Over a 100 Indian companies, today, have complied with US GAAP standards. That makes 100 Indian companies as our potential targets," Patterson said.

Compliance with US GAAP standards is the first step towards listing in the US stock markets.

"The Indian companies that are looking towards greater visibility in foreign markets will definitely look at a Nasdaq listing as a viable option," Peter Yandle, senior managing director, international marketing, Nasdaq said.

Nasdaq also allows dual listing for companies. All companies that are traded on the NYSE, therefore, are allowed to be traded on the Nasdaq as well, but not the other way round, Patterson said.

Nasdaq that started its operations in 1971, grossed an average daily share volume of 1.7 billion shares for the first nine months of 2004. The total share volume for the same period was 334.3 billion shares, up seven per cent over the comparable period last year.