Tapping the London markets

Alasdair Steele, a partner at Nabarro, explores UK fundraising opportunities for Indian companies

London is a leading financial centre for international fundraisings. 2014 saw the equity markets come back to life following a period dominated by the debt markets, although activity tailed off during the latter half of the year. 2015 has seen an increasing number of companies looking to conduct IPOs in London. The London market can currently be described as “receptive but cautious”.

When looking at London, there are a number of different options available:

• Premium listing on the London Stock Exchange’s Main Market – this is the gold-plated, highest standard of listing for equity securities and is often what is described as “the London Stock Exchange”.
• Standard listing on the London Stock Exchange’s Main Market – a regulation-light listing on the London Stock Exchange.
• AIM listing – listing on the junior market, with even more limited regulation (although in certain areas, AIM regulations are more stringent than those that apply to standard listings).
• Wholesale debt markets, whether for simple bonds or convertible bonds – these are typically issued in large denominations and for significant principal amounts.
• Order book for retail bonds – for retail bonds, typically of smaller denominations and total principal amounts, aimed at retail investors.

Alasdair Steele is a partner in Nabarro’s corporate team and the head of its financial sector group. He is also head of the firm’s India Desk and he regularly visits investors, businesses and advisers in India. This year, he has been advising on the £150 million IPO by Sequoia Economic Infrastructure Income Fund and the £100-120 million IPO of Revolution Bars Group. He previously advised on Nandan Cleantec’s IPO and Infrastructure India’s reverse acquisition of Indian infrastructure assets from Guggenheim and an associated fundraising. Nabarro is a leading international law firm headquartered in London.