News: India Inc looks beyond local listings
(TNN 14/04/2006) Mumbai - As the ‘India story’ continues to resonate in international markets, scores of freshly-listed local corporates are now looking at foreign listings. The second round of equity raising in international markets primarily aims to fund foreign forays and equity investments in international JVs. What’s more, it also gives FIIs, already owning Indian stock, enhanced comfort levels in these companies.
“At least two dozen recently-floated Indian companies are looking at listing their shares/convertible bonds on foreign stock exchanges. The new trend will pick up momentum in another two months,” sources explained.
While some corporates such as IL&FS Investsmart, 3i Infotech, Punj Lloyd (all listed on the Singapore Stock Exchange), KRBL (on the Luxembourg Stock Exchange) and IVRCL Infrastructures & Projects have already floated their shares or convertible bonds abroad, many others have queued up raise equity abroad, according to market sources. Jet Airways, Power Trading Corporation, Uttam Sugar Mills, Kalpataru Power Transmission and ABG Shipyard are among the prominent names that are expected to go in for foreign listings.
A majority of the foreign listings is done through GDRs and FCCBs. Market sources said many are opting to list them in Singapore and Dubai, apart from the traditional markets of Luxembourg and London.
According to a recent report by E&Y, Indian companies are showing a strong appetite for alternative funding sources like GDRs and ADRs, thanks to aggressive expansion plans. Recent rules on GDR and ADR issues, wherein companies not listed in India were barred from raising foreign equity, including convertibles, is expected to aid the new trend — hit the domestic market and then head to foreign pastures.
An analyst said Indian paper has continued to be in great demand abroad, and local companies are just cashing in on the boom. “Many construction, engineering and EPC companies have floated shares or bonds on foreign stock markets.
Primarily, these companies need to invest equity funds in BOT (build-operate-transfer) concessions or such joint ventures,” he said. With FIIs increasingly ruling the Indian markets, raising funds abroad and a subsequent foreign listing is only a natural corollary, says another analyst.
A senior official from IL&FS Investsmart said the Singapore Stock Exchange has become the most convenient and the preferred destination to raise money, since most international fund managers who invest in India have investment desks in south-east Asia.
ABG Shipyard is also believed to be looking at raising funds from foreign markets, and aims to list shares/bonds abroad. Its directors’ board is slated to meet on April 15 to consider raising of long-term financial resources. The company has managed to garner a huge order book, and is sitting pretty with its future earnings.
“At least two dozen recently-floated Indian companies are looking at listing their shares/convertible bonds on foreign stock exchanges. The new trend will pick up momentum in another two months,” sources explained.
While some corporates such as IL&FS Investsmart, 3i Infotech, Punj Lloyd (all listed on the Singapore Stock Exchange), KRBL (on the Luxembourg Stock Exchange) and IVRCL Infrastructures & Projects have already floated their shares or convertible bonds abroad, many others have queued up raise equity abroad, according to market sources. Jet Airways, Power Trading Corporation, Uttam Sugar Mills, Kalpataru Power Transmission and ABG Shipyard are among the prominent names that are expected to go in for foreign listings.
A majority of the foreign listings is done through GDRs and FCCBs. Market sources said many are opting to list them in Singapore and Dubai, apart from the traditional markets of Luxembourg and London.
According to a recent report by E&Y, Indian companies are showing a strong appetite for alternative funding sources like GDRs and ADRs, thanks to aggressive expansion plans. Recent rules on GDR and ADR issues, wherein companies not listed in India were barred from raising foreign equity, including convertibles, is expected to aid the new trend — hit the domestic market and then head to foreign pastures.
An analyst said Indian paper has continued to be in great demand abroad, and local companies are just cashing in on the boom. “Many construction, engineering and EPC companies have floated shares or bonds on foreign stock markets.
Primarily, these companies need to invest equity funds in BOT (build-operate-transfer) concessions or such joint ventures,” he said. With FIIs increasingly ruling the Indian markets, raising funds abroad and a subsequent foreign listing is only a natural corollary, says another analyst.
A senior official from IL&FS Investsmart said the Singapore Stock Exchange has become the most convenient and the preferred destination to raise money, since most international fund managers who invest in India have investment desks in south-east Asia.
ABG Shipyard is also believed to be looking at raising funds from foreign markets, and aims to list shares/bonds abroad. Its directors’ board is slated to meet on April 15 to consider raising of long-term financial resources. The company has managed to garner a huge order book, and is sitting pretty with its future earnings.
posted by InCar Group Press Room at 14:08
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