Funds raised from AIM cross $ 1 bn

December 6, 2006	(Be the first to rate this story!)  Loading ...
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With a multitude of Indian property developers and other companies tapping Alternate investment market (AIM), this London Stock Exchange’s junior venue has become a hunting ground for the companies to raise money to fund their projects in India.

The total capital raised by 10 Indian conglomerates listed on the AIM during 2006 has been evaluated to cross the billion dollar mark.

Participation of Indian companies has surprised the LSE’s authorities who had not expected such an active and quick response in the light of the fact that exchange has just began to market AIM in India in 2005, says Hugh Sanderman, LSE’s head of business development for India, who has visited the country to meet a clutch of companies and financial gurus.

Sanderman has so far refused to say anything to suggest what could be the level of response from Indian companies to list in AIM 2007 as he believes that it would be too early to comment on nature of the different businesses.

More and more Indian real estate developers are coming forward to seek the AIM‘s assistance to fund their expansion modes. The newest addition in the ongoing trend has been made by Unitech, one of India’s largest real estate firms who is all set to raise $700 million alone by listing its newly floated vehicle here.

As compared to the year 2006, only three Indian companies listed in AIM 2005 to raise $75 million. Sanderman believes that there is a profusion of flourishing companies in India, with strong potential for listing on an international exchange.

He further added that companies planning to carve a competent niche in the international market are likely to list their international arm on AIM. Also, the companies in pursuit of collateral future growths and intending to build up their business would take keen interest to list in AIM.

There are now almost 1,600 companies on AIM and since it started, $70 billion of equity capital has been raised on this market.

News Published Under:   Real Estate India, Real Estate Developers |

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