New Delhi: Amidst the continuing turmoil in the global capital markets, India-focussed companies on the Alternative Investment Market (AIM) of the London Stock Exchange have registered nearly 5% jump in market capitalisation crossing $6 billion last month.
The market capitalisation of 23 India-focussed firms listed on AIM stood at $6.64 billion as on 31May, an increase of 4.89% over the previous month (April).
According to data compiled by global consultancy firm Grant Thornton, the average rise in market capitalisation of these stocks from their respective dates of admission till May 31, 2008 touched over 60%.
“The average increase in market capitalisation of these stocks from their respective dates of admission to the end of May 2008 has been 66%, compared to 52% to the end of April 2008 indicating that India-focused stocks on the AIM market have exhibited positive growth in the month of May, even in the wake of volatile markets globally,” Grant Thornton said.
Out of the total 23 India-focussed companies, Mortice Ltd and OPG Power Ventur Plc were admitted to AIM in May 2008. OPG raised about 65 million pounds last month.
In terms of percentage gains in market capitalisation, Great Eastern Energy Corporation topped the list with an increase of 853% over market capitalisation at admission. This amounted to a Compounded Annual Growth Rate (CAGR) of 150%.
Great Eastern Energy was followed by KSK Power Venture Plc with a gain of 493% and Eros International Plc (90 per cent), in terms of their respective market caps at admission.
For KSK Power Venture and Eros International had a CAGR of 208% and 40%, respectively.
However, Indian Film Company saw a sharp fall in market capitalisation, trading 28.49% lower than its admission market capitalisation.
Further, Hirco Plc was trading 28.20% lower than its market capitalisation during admission.
Grant Thornton said that Indus Energy Plc and KSK Emerging India Energy Fund Ltd would most likely be admitted to the AIM market during June and are expected to raise 25 million pounds and 101 million pounds, respectively.
During May, the listing of CBaySystems Holdings Ltd was temporary suspended from AIM post the announcement of the proposed acquisition of a 69.5% shareholding in MedQuist Inc. The admission of Dev Property Development Plc was cancelled in the same month.