Indian firms rush to AIM

With the AIM (Alternative Investment Market) becoming increasingly popular as a fund raising destination, Indian companies are flocking to tap the opportunity provided by this sub-market of the LSE.

Almost 60 companies are looking at getting listed on the AIM in the forthcoming year, with as much as six lined up for early next year.

These companies belong to sectors as varied as media, technology, natural resources and renewable energy.

Since most of them are mid-cap companies, they are looking at raising around $50 million. Grant Thornton, the international accounting and business advisory company, is supposedly in talks with these companies for a possible equity listing.

To add to the list, three offshore registered funds are planning to raise money from AIM. These include a private equity fund, an infrastructure fund and a SME fund dedicated to Indian companies.

The private equity fund will mop up $100 million, followed by the SME fund which will attract $100 million and the infrastructure fund will harness $250 million.

These funds are aiming to list in 3-6 months. Investment funds such as Kubera and Promethean have already raised Rs 900 crore (Rs 9 billion) to invest in Indian companies.

Sources said some media firms have evinced an interest in listing on the AIM after the success achieved by Indian Film Company.

The Raghav Behl-promoted company raised around Rs 445 crore (Rs 4.45 billion) on the AIM to invest in production and intellectual property rights of Indian films.