Enthusiasm among Indian companies to list on London’s Alternative Investment Market (AIM) appears to be slipping.
Two Indian companies recently said they would delay their listings until market conditions improve.
Law firms have also noticed an increasing hesitancy to list.
“There has been a drop in the number of companies listing on AIM because of choppy market conditions,” said Mike Edwards, director of Cains, an international law firm headquartered in the Isle of Man. “This is not to say they are bad businesses but investors are just reluctant at this point.
“The point that needs to be made in relation to IPOs is that the reduced number of companies actually achieving a listing only tells part of the story. Behind the scenes, we are currently acting for five Indian businesses which propose to list Isle of Man companies when the markets regain a greater degree of stability. Those companies are preparing the documents required for their IPOs so that, as soon as stability returns, they are ready to list and can push ahead with significantly reduced lead-in times,” Edwards told India Business Law Journal.
Nine Indian companies, including Indian or foreign-promoted Indian companies and foreign companies holding Indian assets, listed on the AIM in 2007. But none has listed so far this year.
