A leading newspaper group in Delhi is keen to list a planned new company on the Alternative Investment Market of the London Stock Exchange.

Another Mumbai based entertainment company with interest in films and television software, is also said to be in the process of doing the same.

Earlier this week, Network 18, the group holding company for TV 18, Global Broadcast News, Web 18 and Studio 18 announced the formation of The Indian Film Company to be listed on AIM later this month.

"It is a market suited to mid-cap companies on a fast track. It is one of the quickest ways - it takes about 2-3 months - to raise money for expansion," says a source in NDTV.

Listing on any other exchange takes longer. In India, a company has to be in business and be profitable for three years before it can be listed.

Though NDTV Networks, the company planning to launch entertainment channels, was to access AIM, it has got private equity funding for now.

"The listing is not shelved though, only postponed," the source adds. AIM is a flexible offering where companies are not required to have any specific financial track record or trading history.

There are no minimum requirements in terms of size or number of shareholders in the company, nor do they have to be incorporated in the UK.

"Public stock markets invest in the past of a company. The AIM investor invests in the "future". The market is willing to put money on eccentric or exciting new ideas," says Vijay Jindal, chief intellect officer, Bennett, Coleman & Co, who refuses to confirm that even the Times group is readying to access this market.

TV 18 CEO Haresh Chawla feels that AIM is a high-risk, smaller exchange. "Yes, it does look at newer ideas but the investors also get tax breaks," he adds. Both individual and corporate investors at AIM, whether in the UK or elsewhere, are entitled to a host of tax relief.

Clearly, entertainment companies are making a beeline for AIM as "investors out of Europe and US are keen to invest in our entertainment sector because of the India story," observes Rajesh Jain, head of KPMG's media practice.