 | « Back to article | Print this article |
Enthused by Prime Minister Manmohan Singh's proposed visit to world's premier New York Stock Exchange on Wednesday, analysts say it will have a 'positive impact' and revive India Inc's dream for overseas listing.
Unlike in 1999-2000 when it was mostly IT companies speaking of overseas listing, analysts say, this time it could be the big players like Bharti, Tata Motors, TCS and big banks who would lead the race for going for American and Global Depository Receipts (ADRs/GDRs).
"The PM's visit to NYSE will have a positive bearing on sentiments of Indian companies and set a good impression," ICRA chief economist Saumitra Chaudhury said, when asked whether the visit would revive India Inc's ADR/GDR dreams.
Although Prime Database managing director Prithvi Haldea is not very optimistic about the market sentiments in US, he said: "Already in the pipeline are names like Bharti, Tata Motors and Tata Consultancy Services, who are expected to issue ADRs in the next 12-18 months."
There are a host of PSU banks like Canara Bank, Allahabad Bank and Oriental Bank of Commerce who are exploring possibilities of US listing this fiscal or in coming years.
The banks are tapping the market to raise capital as they would require additional funds to provide for market, credit and operational risks, as envisaged by the international Basel-II norms.
Haldea said each of these issues could be in the range of $100-200 million.
There are still other companies who are eyeing the European market for GDR floats.