LSE seeks listing by top Indian companies

London Stock Exchange (LSE), one of the top four bourses in the world, is eyeing top 15 Indian companies at the Luxembourg Stock Exchanges for LSE listing, as a part of its strategy to penetrate emerging markets in 2005. There are 35 Indian firms listed at the Luxembourg bourse through global depository receipt (GDR) route.

The business development manager of LSE (India and Australia), James Woodley, said the LSE was keen on pharmaceutical giant Ranbaxy and automobile giant Mahindra & Mahindra, now leading the chart of Indian firms at Luxembourg.

The LSE has set up a special trading platform for small cap companies called AiM to accommodate more companies from emerging markets like India. Woodley said that the LSE has initiated a special drive for three emerging markets, Russia, India and China.

The LSE has for the first time opened an office in Hong Kong to tap the Chinese market. Woodley was here as a part of the UK delegation at the CII Partnership Summit.

"The LSE will meet few Indian companies during our stay here. Besides, we are actively looking into the top Indian companies listed in Luxembourg like Ranbaxy and Mahindra & Mahindra. The LSE will give a better valuation than Luxembourg to Indian companies," he said.

Woodley, however, refused to comment on whether the LSE has initiated discussion with these companies. "LSE got ACC and Amtek Auto in 2004 and is hoping to add few in 2005," he added.

Currently, there are 18 Indian companies listed at the LSE across sectors like IT, cement, power, auto, oil, electronics, tea and hospitality.

These are SSI, Reliance Energy, East India Hotels, CESC, HFCL, Bajaj Auto, Tata Tea, Raymond, ACC, Amtek Auto, SAIL, Ashok Leyland and Indian Hotels.

According to Woodley, the combined market capitalisation of the Indian companies at the LSE is around $3.2 billion as of December 2004. It was around $ 2.7 billion in June 2004.

Woodley said LSE teams would visit India frequently but would not open a representative office in India like Nasdaq. LSE has also introduced a new concept called retail depository receipts for countries which did not have full convertibility.

"Retail investors cannot invest in GDRs. It is only for professional investors. So LSE has evolved the product called RDR but RDR norms are more stringent than GDR," she said.