Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Online-views/  Sebi directive on IDR dents MNCs’ plans of India listing
BackBack

Sebi directive on IDR dents MNCs’ plans of India listing

Sebi directive on IDR dents MNCs’ plans of India listing

Premium

Mumbai: A recent directive by Sebi (Securities and Exchange Board of India) barring conversion of Indian depository receipt (IDR) into primary equity shares of foreign companies has dented the India listing plans of some multinationals in the technology sector, a senior i-banker said on Tuesday.

“There was not much of interest in IDR to start with but due to this Sebi directive some companies in the tech and tech-related space, which had plans, are now rethinking their strategies," chief operating officer of Kotak’s investment banking division S. Ramesh told reporters here.

Sebi had announced last week that IDR holders cannot convert the instrument into primary equity shares of the foreign company after a year, unless the IDR is illiquid. This led to the IDR of Standard Chartered -- the only company to raise capital through the instrument --tanking by over 15%.

Ramesh, who was speaking at a London Stock Exchange (LSE) Group roadshow, did not specify the number of or names of the technology companies who were interested in coming out with IDR issues.

The LSE, which has witnessed listing by corporate houses like Essar and Vedanta for fund raising, is seeing a “significant" interest from Indian companies, its head of primary markets for India, Ibukun Adebayo, said.

He said the number of equity listings on the main market and the AIM (alternate investment market) for smaller businesses will exceed the traditional GDR (global depository receipt) issues this year.

Last year, out of seven India-focused or domiciled companies which enthused interest, five small companies listed on the AIM while one--Essar Energy -- listed on the main market, he said, listing mining, metals and energy as areas where LSE has a “strong franchise".

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 Jun 2011, 05:44 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App