Ibukun Adebayo, Manager (India & International), International Business Development, London Stock Exchange, was in India recently for a seminar organised by CII on The Alternative Investment Market: Opportunities for Indian Companies. He met BT’s Manu Kaushik for a free-wheeling chat on the India chapter of AIM. Excerpts:
Why are Indian companies rushing to the Alternative Investment Market (AIM)?
AIM is an ideal platform for small cap companies and offers them a wider investor base and greater liquidity. Companies that have joined AIM so far don’t look for a general way of raising money through AIM. It is for companies that have clear strategic reasons for coming to AIM. And this may include companies that are looking not only at the Indian market, but aiming for a much larger global role, from an early stage of their existence.
What is your strike rate in India?
AIM has witnessed substantial growth in recent times. Seven Indian companies have listed on AIM so far this year and raised $725 million (Rs 2,900 crore). We hope to see two or three more Indian companies listing on AIM by the end of this year.
Which sectors are you planning to target?
In 2007, we have seen companes in sectors such as media, private equity and real estate coming to AIM. We are looking for companies having the right kind of equity story—companies looking for acquisitions abroad and those trying to widen their investor’s base.