3 Indian SMEs to list on LSE’s AIM

AIM allows smaller companies to float shares with a more flexible regulatory system.

Small and medium enterprises (SMEs) are expected to get a chance to list on the London Stock Exchange’s AIM (Alternative Investment Market),and three Indian companies will be listed on this bourse by March,investment banking firm Religare Capital Markets said today.

AIM,a sub-market of the LSE,allows smaller companies to float shares with a more flexible regulatory system than is applicable to the main market. Launched in 1995,it has already raised almost 24 billion pounds for over 2,200 firms.

“We expect nearly 12 small size Indian companies to list on the AIM over the next 24 months,of which three companies will list by March 2012,” Religare Capital Markets Head,India Investment Banking,Nalin Nayyar told PTI here.

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The investment banking and institutional securities arm of Religare Enterprises is organising a series of seminars across the country to help corporates access the LSE.

LSE has 72 India-focused companies listed on its markets and in 2010 it was the leading international exchange by amount of capital raised by Indian firms. They raised a record USD 2.24 billion on the LSE in 2010,eclipsing the previous highest total of USD 1.19 billion in 2007.

“We expect mid-size companies from energy,mining,hospitality and clean tech sectors,looking at raising USD 30- 50 million,to list on AIM,” Ernst & Young’s Partner Private Equity and Transaction Advisory Services Mayank Rastogi said.

Raising money through debt in India is relatively more expensive given the current high interest rate environment,Rastogi said.

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Religare Capital,along with LSE,is looking to work with Indian firms keen to raise equity capital from investors in offshore markets. It will hold roadshows in Mumbai,Bangalore,Hyderabad and Delhi in this regard.