Financial Express

Dubai: Next destination for India Inc

Sept 12, 2006

Mumbai: More and more Indian companies have now started looking beyond Singapore and Luxembourg, when it comes to a foreign listing.
 

    Dubai International Financial Exchange (DIFX) is fast becoming the latest attraction with quite a few Indian companies eyeing to list instruments issued by them like Global Depository Receipts (GDRs) and foreign currency convertible bonds (FCCBs).

According to sources, there are nearly 6-7 companies that are already mulling a listing on DIFX by way of GDRs.

Experts opine that by gaining a presence in the oil-rich region, a large number of rich investors can be tapped who still do not have much exposure to the Indian markets.
 

    "There are not many FIIs from the Middle East region who are registered with the Indian capital market regulator. They mostly use the PN route, which has been mired in controversy in the recent past. By gaining listing on DIFX, a company can easily attract the rich investors of the Middle East", said a merchant banker who has earlier interacted with DIFX.
 

    He further said that it is believed that there are more local HNIs in Dubai than financial institutions. "Our firm is in talks with a couple of Indian companies who are planning their Dubai foray. Sectors like oil & gas and construction are easily accepted there," he added.

A vice-president of another leading merchant banking entity said that they also are in talks with at least two Indian companies who are eyeing the DIFX and if things go on smoothly, then the listings can happen anytime, pre-Christmas.
 

    Incidentally, the listing norms of DIFX are also under review. Mark Fisher, head (corporate communications), DIFX, in an e-mailed response to FE, said, “We are currently reviewing our listing rules to make them more appropriate for potential issuers, including those from India.”

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