Groundbreaking structure devised for fifth Indian company to list on AIM- LG Indian market focus pays off
26 October 2006
Indian power project company generates $58 million on AIM float
London-based business law firm LG is advising KSK Power Ventur Plc ("KSK"), an Indian group developing private power projects across India, on its admission to AIM. Admission and the commencement of trading in KSK's shares is scheduled for 1 November 2006, giving KSK a market capitalization of approximately $260 million.
Arden Partners have been appointed as nominated adviser and broker to KSK.
LG has now advised on three of the five Indian AIM listings, with a combined market capitalisation of over $760 million, having previously been legal advisors on the IPO's for Hardy Oil & Gas Plc and Great Eastern Energy Corporation Ltd.
KSK is the fifth Indian group to list on AIM and is the first to implement an innovative restructuring which additionally sees its shares listed exclusively in the UK and not in India.
Corporate partner Tom Nicholls who led the team advising KSK, which included Claire Steel and Sarah Bailey, says: "The innovative restructuring put in place for the KSK group is groundbreaking. KSK has obtained Indian governmental clearance to foreign investment in its Indian operations through the AIM listed Isle of Man holding company without the need to seek a listing in India. We anticipate that this will only add to the growing interest shown by Indian companies in the opportunities presented by AIM".
Corporate partner Sunil Kakkad, who heads LG's specialist India Group, adds: "We are seeing a major rise in interest in AIM from companies and intermediaries in India and, with a number of further Indian IPOs in the pipeline, we hope to consolidate on our market leading position."
KSK will use funds raised from the placing of new shares with institutional investors to invest further in power projects in India and to develop fuel assets. Their strategy for growth is to work with major international and Indian businesses and electricity distribution companies to ensure that they have access to dependable and cost effective sources of electrical power.
Tom Nicholls adds :"The supply and availability of dependable and economic power supplies to industry will be fundamental in ensuring that the anticipated growth in Indian GDP is achieved. We look forward to continuing to assist the group as it seeks to exploit the opportunities presented by the continuing deregulation of this sector in India."
Note to editors
- LG is a London-based business law firm with over 270 lawyers
- Its specialist India group includes dual Indian/English qualified lawyers who understand the legal, commercial and cultural environment of India. They have extensive experience of advising Indian businesses on their international expansion and other businesses when making significant inbound investment into India
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Tom Nicholls
+44(0)20 7759 6672
Sunil Kakkad
+44 (0)20 7759 6584