< IIFM News: Aiming High
IIFM: International Institute Of Financial Markets
IIFM Press Release
  • Aiming High.

  • Even as the Essar Energy IPO was a stellar at the London Stock Exchange, raising $1.9 billion and becoming India Inc's largest-ever overseas listing, there were some India-related companies on LSE's junior exchange that created quite a stir. KSK Power Ventur and Great Eastern Energy Corporation slowly yet steadily progressed from the Alternative Investment Market (AIM) to the Standard Listing on the LSE and Greenko managed a follow-on fundraising of $111 million at the AIMóLondon Stock Exchange's global market for innovative and growing companies. Even as the biggest draws at the AIM have been clean technology, renewable energy, natural resources, real estate and financial services, not many know that till recently, the junior exchange was scouted by Amitabh Bachchan for his production company, AB Corp. AIM has also attracted India-related media firms such as Eros International and the Indian Film Company, raising $50 million and $110 million, respectively. According to Grant Thornton index of London-listed India-related stocks, the India Watch Index, since its inception in 2007, has gained 70% and was up 8% in Q1-2010. Interestingly, the best performing 'India Watch' stocks in the first quarter of 2010 were all from the AIM, Greenko Group, DQ Entertainment and Unitech Corporate Parks, raising 41%, 39% and 35%, respectively.

    Advantages beckon
    For Major Manjit Rajain, executive chairman, Mortice, AIM was a well-thought decision. After a seven-year stint with the Indian Army Rajain founded the Peregrine Group, a security service provider,15 years back. After venturing into real estate with Tenon Property Services, Rajain decided to set up a facility management company and that led him to the AIM. "We explored the PE option. But the investments and valuations didn't work out. The pound of flesh the PE guy wanted was much larger than his contribution to the company." He explored the BSE as well. "But that required a certain capitalisation and profitability level. And to be honest, it didn't offer much to the smaller companies. I went around Bombay, but it was very difficult to sell my story. People could not relate to security service business and facility management," he says.

    A fact also corroborated by Girish Bisht, senior research analyst, International Institute of Financial Markets (IIFM). Comparing the listing requirements at AIM vis-a-vis BSE, Bisht says for young companies, there is a definite advantage to list at the AIM. "No minimum market capitalisation is required at AIM, whereas for BSE, minimum...

    Original News on Financial Express website.

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