There is no doubt that the Alternative Investment Market (AIM) is, on the face of it, an attractive proposition for Indian companies seeking to access foreign capital markets. In the last year 11 Indian or India-focused companies have raised over £1bn on AIM and, if anecdotal evidence is to be believed, more than 20 Indian companies will float on London’s junior exchange in 2007, jointly generating £2.5bn.
Several factors make AIM a favoured market for these companies: lower entry barriers; a lighter touch on regulation and compliance; comparative flexibility; and the perception of greater liquidity than other foreign exchanges previously favoured by Indian companies, such as Luxembourg and Singapore.
