Indian winners on LSE attract new IPO hopefuls
Share prices of Indian companies listed on the London Stock
Exchange (LSE) continue to outperform both the AIM All-Share and
the FTSE 100 according to India Watch, a quarterly review due to be
released this week by the leading business and financial adviser
Grant Thornton. Meanwhile, a host of Indian firms are closely
watching Essar Energy's planned £1.6 billion listing of a minority
stake to decide if they too should seek a listing in London.
"The outstanding performance of Indian firms
listed in London is encouraging other Indian firms to look into
raising funds here. In early March, more than 70 Indian firms
attended a roadshow hosted by the London Stock Exchange in New
Delhi, Mumbai and Hyderabad. A lot of these will be holding their
breath to see if Essar Energy can pull off the biggest primary
listing that London has seen for ten years," said Anuj Chande, Head
of South Asia Group at Grant Thornton UK LLP.
"We are in advanced negotiations with another
Indian power provider for an initial public offering it plans in
London later this year. We are also in discussions with ten other
candidates planning to raise capital in London this year," Chande
continued.
The India Watch index rose 8% in the first
quarter of 2010 and is 3.4 times higher than twelve months earlier,
having risen a staggering 237% since 1 April 2009. By comparison,
the AIM All-Share recorded gains of 70% since 1 April 2009, while
the FTSE 100 has seen a 45% rise. In the first quarter of 2010, the
AIM All-Share rose by 7.5%, while the FTSE 100 was 5% up.
"Indian stocks listed in London are showing a
robust performance. Our India Watch Index shows that they have
achieved a remarkable 70% rise since the eve of the credit crisis
in January 2007," commented Chande.
The India Watch index has also outperformed
other indices in previous years: Since its inception in 2007, the
India Watch price index has gained 70%. By contrast, the AIM
All-Share lost 33% since 2007, while the FTSE 100 recorded a 9%
loss.
Even Bombay's Sensex Index has not been able
to keep up with Indian firms listed in London in the year-to-date.
In the first quarter of 2010, Sensex recorded insignificant gains
of less than 1% as it closed at 17528 points. In the twelve months
since April 2009, Sensex has risen by 81%, but the index only
recorded gains of 27% since January 2007.
"Whilst the Grant Thornton India Watch index
continues to outperform there are continuing challenges for Indian
companies in terms of liquidity and respective valuations in
India," Chande concluded.
The best performing India Watch stocks in the
first quarter of 2010 were Greenko Group, DQ Entertainment and
Unitech Corporate Parks, with price increases of 41%, 39% and 35%
respectively.
ENDS
For further information, please contact:
Alex Wessendorff, Grant Thornton Press Office,
T +44 (0)20 7728 2048, M +44 (0) 7983 990837, E
Alex.Wessendorff@gtuk.com
Notes to editors
The Grant Thornton South Asia Group is a
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specialise in advising companies with South Asian links: UK
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business in South Asia; and South Asian companies looking to invest
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