Srinivas
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Expect more Indian firms to tap London market for raising funds
CEO of London Stock Exchange, Alexander Justham is in the trade. Delegation traveling with british prime minister David Cameron during his ongoing high-profile visit to India. In an interaction with Rajesh Abraham, he answered questions on growing competition in the stock exchange space in Europe and his attempts to lure Indian companies to raise funds and list shares in London. Excerpts
It seems that the initial public offerings (IPO) have dried up on LSEs primary markets and even in India, despite the huge global liquidity and near-zero interest rates. What is the reason? Do you think investors have been short-changed by greedy companies? We have examples of Facebook share sales in the US and several others in India where investors have burnt their fingers and decided to stay away from IPOs. What is your analysis of the situation?
While global IPO markets have been subdued over the past few years, Londons markets have very much remained open for business, with listings of various sizes from the UK and other countries. Yet, there have been no major Indian listings on any international exchanges recently and IPO activity has remained subdued the domestic market as well. However, the IPO market is cyclical, reflecting economic confidence, and as sentiment improves, which it is doing, we are already seeing a slow revitalising global IPO market. London remains the largest international exchange in terms of Indian business by some considerable way with 73 companies either listed or traded on London Stock Exchange markets. The Indian pipeline remains strong for us and we expect to see more Indian companies coming to London to raise finance.
Expect more Indian firms to tap London market for raising funds | mydigitalfc.com
CEO of London Stock Exchange, Alexander Justham is in the trade. Delegation traveling with british prime minister David Cameron during his ongoing high-profile visit to India. In an interaction with Rajesh Abraham, he answered questions on growing competition in the stock exchange space in Europe and his attempts to lure Indian companies to raise funds and list shares in London. Excerpts
It seems that the initial public offerings (IPO) have dried up on LSEs primary markets and even in India, despite the huge global liquidity and near-zero interest rates. What is the reason? Do you think investors have been short-changed by greedy companies? We have examples of Facebook share sales in the US and several others in India where investors have burnt their fingers and decided to stay away from IPOs. What is your analysis of the situation?
While global IPO markets have been subdued over the past few years, Londons markets have very much remained open for business, with listings of various sizes from the UK and other countries. Yet, there have been no major Indian listings on any international exchanges recently and IPO activity has remained subdued the domestic market as well. However, the IPO market is cyclical, reflecting economic confidence, and as sentiment improves, which it is doing, we are already seeing a slow revitalising global IPO market. London remains the largest international exchange in terms of Indian business by some considerable way with 73 companies either listed or traded on London Stock Exchange markets. The Indian pipeline remains strong for us and we expect to see more Indian companies coming to London to raise finance.
Expect more Indian firms to tap London market for raising funds | mydigitalfc.com
