Indian trading on London Stock Exchange registers 12.5% increase in 2017

The trading of Indian Global Depository Receipts (GDR) on London Stock Exchange showed a marked increase in 2017 compared to 2016, which experts said reflects enhanced investors' interest in one of the fastest growing major economies in the world.

The total value traded of Indian GDRs on the exchanges International Order Book was $4.12 billion last year, an increase of 12.5 per cent compared to 2016 which recorded $3.66 billion.

The exchange said that the hike reinforces Londons status as the most important international financial centre and India's funding partner of choice.

"The increase in Indian GDR trading on London Stock Exchange in 2017 reflects enhanced overseas institutional investor interest in one of the fastest growing major economies in the world and Londons ability to fund this growth," said Gokul Mani, the exchanges newly-appointed Head of Primary Markets India, Middle East, Africa, responsible for the firms listings business across product classes in these markets.
 

"In launching GDRs or renewing and replenishing existing depository receipt programmes in London, Indian issuers have access to deep liquid pools of multicurrency capital and investors that understand the India equity story," he said.

The increase in Indian GDR trading on London Stock Exchange in 2017 was led by Reliance India Ltd, which recorded a total value traded of 1.49 billion dollars in 2017, compared to 1.23 billion dollars in 2016.

State Bank of India (SBI) recorded an increase of USD 822 million total value traded in 2017, compared to 470 million dollars in 2016. Similarly, Larsen & Toubro recorded USD 481 million in 2017 compared to USD 362 million in 2016 and Reliance Infrastructure recorded USD 39 million in 2017 compared to USD 20 million in 2016.

The International Order Book (IOB) is London Stock Exchanges trading platform for Depository Receipts, and it is the main trading venue for the most liquid Indian GDRs.

GDRs are tradeable instruments that have domestic shares as the underlying security and are issued by emerging market companies wanting to raise capital from overseas investors, as well as access a wider international investor base.

They are usually subscribed to and traded by foreign investors whose investment charters and policies prevent them from holding or trading emerging market securities on the domestic equity exchanges and trading platforms.