Indian GDRs record $12-bn turnover on LSE

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British investors' interest in the Global Depositary Receipts of Indian firms more than doubled in 2007, taking total turnover of these companies on London Stock Exchange to a record of close to USD 12 billion.

The 28 Indian companies listed on the LSE's trading platform for GDRs, the International Order Book (IOB), recorded a total turnover of USD 11.9 billion last year.

India's most valued company, Reliance Industries, alone accounted for close to four billion dollars, while companies like Reliance Energy, Mahindra and Mahindra, Indiabulls Real Estate and MTNL also saw robust trading activities.

"The huge increase in turnover has been due to the broad market perception that Indian stocks are isolated from global concerns. Their dependence on exports is much less than other economies and global investors see significant additional headroom for growth in Indian stocks," LSE's Senior Manager (India and International Business Development) Ibunkun Adebayo said.

There is good opportunity for investment in Indian stocks, as the corporate earning growth is also significant in companies of the country, Adebayo added.

The total IOB turnover of Indian GDRs stood at USD 5.2 billion in 2006, while it stood at USD 5.4 billion in 2005.

Given London's reputation as the world's financial capital and the global exposure an LSE listing gives, four Indian companies, which had previously listed their GDRs in Luxembourg, opted for LSE's IOB platform in 2007.