MOTHBALLED INDIAN GDRS COMING TO MARKET
By Gordon Platt
More than $1 billion of planned global depositary receipt (GDR) issues from companies in India were delayed in March, when market conditions deteriorated following the outbreak of hostilities in Libya and rising oil prices. Those companies may soon come to market.
Mumbai’s Kingfisher Airlines has resumed talks with investors for a GDR of about $300 million on the Luxembourg Stock Exchange.
The airline named Citi, J.P. Morgan and Credit Lyonnais Securities Asia as investment bankers. Kingfisher is seeking to expand its route system to smaller Indian cities, as well as international destinations.
Southeastern firm Empee Sugars and Chemicals is also planning a GDR issue to finance a sugar factory and co-generation power plant. Jindal Stainless Steel and Orbit, a Mumbai real estate developer, are also planning to issue GDRs.
Meanwhile, the London Stock Exchange says the Indian listing pipeline is quite strong. It says the number of share listings and issues on London’s AIM (Alternative Investment Market) from Indian companies should exceed GDR listings into 2012. The LSE held road shows in Mumbai and Delhi in June. Companies based in India raised a record $2.24 billion in London last year.
The exchange says trading in Indian GDRs has increased this year. There are now 71 India-based or India-focused companies listed on the LSE’s markets. Most Indian GDRs are traded on the London or Luxembourg exchanges.