“AIM of the LSE is the best market to provide growth capital for early to mid stage companies,” feels Chandiok. Rather than 
assessing a company on the basis of its past performance, AIM values it on future potential. Moreover, the advantages of AIM are that it offers flexibility and has no minimum requirement; secondary issues are very clear and thus fund raising is much easier. “No doubt designed primarily for emerging or smaller companies, AIM is considerably the best, with balanced regulation and not loosely held, what many critics feel. Besides, it’s not cheap,” defends the ‘specialist’ when it comes to AIM listing’. There have been other successful growth markets KOSDAQ (Korea), SASDAQ (Singapore), TXSV (Toronto), GEM (Germany), but no one is close AIM. In 2007, as many as nine India centric companies were listed on AIM, raising a total of $846 million, as per a fact sheet by the London Stock Exchange. Some of these companies include UTV Motion Pictures, Dev Property Development, Evolvence India, Promethean India and Indian Film Company.
But what is that crucial element that GT looks for before associating with companies? “First and the foremost belief in management team; expertise in the sector, what they have done before in the same business or previous business and generally me and my collegeue who come from Grant Thornton UK, all of them have been very impressed with quality of management overall. Second thing that we look for is future potential, so immediate profits don’t matter,” he avers, adding that lastly, there must be a reason good enough, as to why they want to raise international equity. “Of course, we can also educate them about the positives of overseas listing,” he says.
“As a nominated advisor or a nomad (as it is known), GT sits on top of the head of a company and ensures proper functioning, in accordance with the rules and the regulation with various authorities,” says Chandiok with finality, adding that at the end of the day, if you want returns on investment, you need to be really on your toes all the time. Did someone say, making moolah was a cakewalk?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
assessing a company on the basis of its past performance, AIM values it on future potential. Moreover, the advantages of AIM are that it offers flexibility and has no minimum requirement; secondary issues are very clear and thus fund raising is much easier. “No doubt designed primarily for emerging or smaller companies, AIM is considerably the best, with balanced regulation and not loosely held, what many critics feel. Besides, it’s not cheap,” defends the ‘specialist’ when it comes to AIM listing’. There have been other successful growth markets KOSDAQ (Korea), SASDAQ (Singapore), TXSV (Toronto), GEM (Germany), but no one is close AIM. In 2007, as many as nine India centric companies were listed on AIM, raising a total of $846 million, as per a fact sheet by the London Stock Exchange. Some of these companies include UTV Motion Pictures, Dev Property Development, Evolvence India, Promethean India and Indian Film Company.But what is that crucial element that GT looks for before associating with companies? “First and the foremost belief in management team; expertise in the sector, what they have done before in the same business or previous business and generally me and my collegeue who come from Grant Thornton UK, all of them have been very impressed with quality of management overall. Second thing that we look for is future potential, so immediate profits don’t matter,” he avers, adding that lastly, there must be a reason good enough, as to why they want to raise international equity. “Of course, we can also educate them about the positives of overseas listing,” he says.
“As a nominated advisor or a nomad (as it is known), GT sits on top of the head of a company and ensures proper functioning, in accordance with the rules and the regulation with various authorities,” says Chandiok with finality, adding that at the end of the day, if you want returns on investment, you need to be really on your toes all the time. Did someone say, making moolah was a cakewalk?
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
4 comments:
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