LSE woos firms for AIM listing

London Stock Exchange (LSE) sees a big opportunity in small- and medium-size Indian companies listing on its trading platform AIM (earlier known as Alternative Investment Market), where one more domestic company, KSK Power Venture, got listed on Wednesday.

The London bourse is also eyeing infrastructure and real estate companies in the country for Global Depository Receipts (GDR) listing on the exchange, said Tracey Pierce, head of company services at LSE.

A total of 52 Indian firms are currently listed on the LSE, of which 23 are primarily listed on the main market and the Professional Securities

Market (PSM), while 20 are listed elsewhere (such as in Luxembourg and Singapore) and traded on LSE's International Order Book Platform for GDRs. Nine companies are with AIM, a trading platform for small- and medium-size companies. KSK Power Venture became the ninth Indian company to float on AIM and raised Rs 263.4 crore.

"AIM is emerging as an excellent platform for small and growing companies to float on a global scale and raise capital. Indian firms, especially from infrastructure and real estate sectors, are keen to show their presence at the international level," she said.

Tracey Pierce, who was here on a roadshow to promote LSE and attract listings from Indian companies, is likely to meet investment bankers and regulatory officials during her trip.

"For LSE's AIM category, another 30 potential companies from all sectors are currently being looked into during the present roadshow," said Hugh Sandeman, LSE's head of business development for India.

On the issue of Asian companies tapping Luxembourg and Singapore to take advantage of relatively easy regulatory norms, Pierce said there were a few cases where companies moved from top exchanges to raise capital in other bourses.

But, some of these companies went into rough water while raising money at the time of follow-on offers.