London Stock Exchange sees strong India fundraising pipeline
- Main Market and AIM new and further issues strong in 2011
- Indian share listings and AIM issues likely to exceed GDR listings in 2011-12
- To hold roadshows in Mumbai and New Delhi with leading advisory and legal firms
The London Stock Exchange Group (LSEG) said today that its short to medium-term pipeline of Indian equity offerings remains one of the strongest among emerging markets.
The composition of the Indian fundraising pipeline is a mixture of share issues by large Indian multinationals on the Main Market, GDR issues and smaller issues on London’s AIM Market, the world’s leading stock market for growth companies. Combined, the number of share listings and AIM issues are likely to exceed GDR listings during 2011-12. Flotations on both markets are expected from a diverse range of sectors in the Indian economy including energy, natural resources, manufacturing and services.
In view of the strong interest from Indian companies, the LSEG is holding road shows in Mumbai and Delhi this month in partnership with Amarchand Mangaldas, Arden Partners, Capital MSL, Citigroup, Ernst & Young, Kotak Investment Banking & Linklaters. The roadshows will highlight the various capital raising instruments, markets and trading platforms that London offers to Indian companies.
Indian companies raised $2.24bn in London in 2010, the highest ever annual total. To date in 2011, Essar Energy has raised $ 550 mn through a convertible bond issue and Greenko & Hirco have raised an additional $ 82 mn and $ 19 mn on AIM respectively. This is the third time Greenko has raised funds in London and the second time for both Hirco and Essar Energy.
Speaking in Mumbai, Ibukun Adebayo, Head of Primary Markets for India at the London Stock Exchange, said:
“We expect more Main Market and AIM new and further issues from India in the second half of the year, from June onwards. As companies both big and small continue to expand their operations beyond India’s boundaries, London remains the leading international financial centre for this growth. London has the expertise & understanding to appropriately value the domestic and overseas operations of Indian multinationals. It has the depth of capital to fund an equity or bond issue of any size.”
An LSEG survey of UK fund managers published today in partnership with Capital MSL reveals that the overwhelming majority of investors remain confident in the Indian growth story and rank India on par with Brazil and ahead of China as investment destination.
There are currently 71 Indian or India focussed companies on the Exchange’s markets. Collectively they have raised over $8bn in London. Trading in Indian GDRs has increased in 2011; total turnover of Indian paper on London’s International Order Book (the trading platform for GDRs) was $3.81bn from January to April this year compared to $5.9bn in 2009 and $8.85bn in 2010.
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About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) sits at the heart of the world’s financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, offering pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe’s capital markets.
The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world an extensive range of real-time and reference data products and market-leading post-trade services.
Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com.