Processing .....please wait.. 
The article has been forwarded.... 
Luxembourg SE emerges top draw for India Inc
By agencies
|
Monday, 19 December 2005, 20:30 IST
MUMBAI: For Indian Inc, the Luxembourg Stock Exchange saw as many as 24 firms raising over $1 billion through GDRs and FCCBs, making it the most preferred destination to raise funds in 2005, a newspaper said.
The highest number of foreign companies at the Luxembourg bourse was of Indian origin - about 44 percent (90 companies), followed by Taiwan (25 percent) and Korea (10 percent), the Hindu Business Line said.
Over 24 Indian companies, including Apollo Hospitals, IndiaBulls Financial Services, Videocon Industries, Bharat Forge, Jindal Saw Pipes and IL&FS Investsmart raised over $1.1 billion in 2005 calendar year, edging out high-profile rivals such as New York Stock Exchange, Nasdaq and the London Stock Exchange.
This is the largest number ever from India after 1994, when 31 companies, including ITC Ltd, L&T, Tata Power and Tube Investments of India tapped the bourse. Incidentally, in 1994 too, the Indian stock markets were trading at high levels, the paper said.
In comparison, during the 2004 calendar year only six Indian companies (Cranes Software, Crest Animation, Elder Pharmaceuticals, LIC Housing Finance, Micro Inks and Teledata) tapped the European bourse.
Analysts said the main reason for Indian companies to raise funds through Luxembourg Exchange was the speed at which they could close the GDRs/FCCB issue. "Companies which require immediate funds for expansion opt for Luxembourg," said a merchant banker, who was involved in a just-concluded GDR issue.
With Indian stock markets ruling at all-time high levels, the companies are also getting good prices for their GDR.
Further, the cost of raising funds at Luxembourg is lower, compared to NYSE or Nasdaq, where stringent regulations and higher compliance levels meant higher initial expenses, the paper said.
Some of the companies that have gone for GDR/FCCB issue at Luxembourg bourse this year are Videocon Industries ($75 million), CESC ($40 million), India Cements ($100 million), Jindal Saw ($65 million), IndiaBulls Financial Services ($130 million), Apollo Hospitals ($65 million), Emco Ltd ($10 million), Usha Martin ($25 million), Bharat Forge ($100 million), Centurion Bank ($10 million), Orchid Chemicals ($75 million), Crew BOS ($5 million), Himatsingka Seide ($60 million), IL&FS Investsmart ($98.96 million), Nagarjuna Construction ($100 million) and Gateway Distriparks ($8.46 million).