LSE to woo mid-size Indian firms

London Stock Exchange is all set to woo mid-size high-growth Indian companies to get listed on its fast growing Alternate Investment Market segment.

"We are looking at three key markets -- India, China and Russia. We believe LSE should be the natural choice for Indian companies," LSE director (market services), Martin Graham, told PTI in New Delhi.

"We are talking to a large number of companies in India for getting listed on LSE," he said, but declined to give names of the companies.

AIM is a segment in LSE meant for small but high-growth corporates.

"We will like to promote AIM to Indian companies as the listing norms are not so stringent as in Nasdaq or NYSE," Graham said.

LSE officials had already met top officials and members of IT apex body National; Association of Software and service Companies.

LSE now plans a promotional tour in the country to lure companies in the other segments as well.

A company willing to list on LSE's AIM does not require to show three years consecutive profit track record and there is no minimum limit for market capitalisation.

"We have the least bureaucratic entry process at AIM, he said, adding after being listed on AIM for two years, the company can join the main market at LSE."

LSE is eyeing companies in IT, telecom, banking, metals, oil and gas sectors of India to list their shares on AIM.

LSE's AIM segment witnessed a 79 per cent surge in market value to pound 18.4 billion last year after 51 new companies joined the segment taking the total number of companies to 754.

While UK-based companies numbered 80 per cent, the remaining were from overseas markets. "The market value of overseas companies zoomed by 256 per cent at AIM," Graham said.

LSE is optimistic of Indian companies specially after the success of Vedanta, the holding company of Anil Aggarwal's Sterlite Industries.

Vedanta's IPO worth $1.0 billion happened to be the second largest issue in London's primary capital market last year, Graham said.

Moreover, he said, "The 18 Indian companies listed at LSE together posted a robust 30 per cent growth in turnover at $120 billion last year."

The only other companies showing better growth were Russian.

"Asian, especially Indian companies, look sound in terms of growth prospects," Graham added.