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Asian
bourses grow fond of Indian paper
More cos opt for S'pore, Hong Kong to raise funds
www.financialexpress.com
MAHESH NAYA
Posted online: Thursday, April 07, 2005 at 0000 hours
IST
MUMBAI,
APRIL 6: Non-traditional markets such as Singapore and
Hong Kong are fast emerging as the preferred destinations
for Indian corporates to raise bonds, displacing traditional
markets such as Luxembourg and London. Overseas investors
are increasingly lapping up paper floated by Indian corporates
in the Asian markets.
Girish
Nadkarni, chief operating officer, IL&FS Investsmart,
said: "Most of the international fund managers who
invest in India have their investment desks located in
south-east Asia. Therefore, Singapore Stock Exchange (SGX)
has become the convenient and the preferred destination
to raise money. With investment in India considered to
be lucrative among players across the globe, any paper
floated in the overseas market by an Indian company is
getting oversubscribed."
In
the last 15 months, (between Janaury 2004-March 2005),
out of 27 companies that have raised over $3 billion through
the foreign currency convertible bonds (FCCBs), more than
half (14 companies) have raised money through SGX.
ASIAN
FLAVOUR
*
14 of the 27 companies that raised
money through FCCBs listed on the SGX
* $2 billion raised from SGX
* More companies plan to issue SDRs in the current quarter
Ravi
Kapoor, head of equity capital markets, DSP Merrill Lynch,
said: "The relatively less stringent listing requirements
leading to quicker processing time have also been a major
draw for Indian companies".
In
the last 15 months, 14 companies have raised nearly $2
billion from SGX with Reliance Energy raising $ 178 million,
Bharti Tele Ventures ($115 million), Tata Motors ($400
million), Zee Telefilms ($100 million), Tata Teleservices
(Maharashtra) ($125 million), Jubilant Organosys ($35
million), Mahindra & Mahindra ($100 million), Sun
Pharmaceutical ($350 million), Jindal Stainless ($50 million),
Tata Chemicals ($150 million), Jaiprakash Associates ($100
million), Glenmark Pharmaceutical ($70 million), Tata
Power ($200 million) and Monnet Ispat (approximately $10
million).
Besides
FCCBs, companies like Varun Shipping are also planning
to raise money through Singapore Depository Receipts (SDRs)
in the current quarter, while Ahmedabad-based Meghmani
Organics made its maiden listing on the SGX mainboard
in August 2004.
Meanwhile,
two companies - L&T ($150 million) and Wockhardt ($110
million) raised funds through FCCBs from the Hong Kong
Stock Exchange.
On
the other hand, companies like Indian Hotels ($150 million),
ACC ($60 million), Ashok Leyland ($100 million), Alok
Industries ($28.88 million), Subex Systems ($10 million),
Sterling Biotech ($70 million), Welspun Gujarat ($40 million),
Natco Pharma ($13.50 million), Essar Oil ($166 million),
Essar Shipping ($47 million) and Gujarat NRE Coke ($55
million) have raised money through FCCBs from the traditional
stock exchanges - London and Luxembourg.
Meanwhile,
according to Prime Database, GTL ($64.50 million), Adani
Exports ($38 million) and United Phosphorus ($75 million)
have also raised money through FCCBs but not listed on
any exchange.
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