AIM was the stepping stone for GEEC. It provided a perfect platform to make a successful transition to the bigger exchange. The visibility that it provided to the company made all the difference. If you perform well here, it is for all to see. Regulatory framework is robust by way of voluntary compliance, disclosure and transparency rules, corporate governance benchmarks, city code, as that of any international public markets. And that prepares you for the bigger game, says Prashant Modi, president and chief operating officer, GEEC. Great Eastern Energy marked the Indian debut on the AIM in December 2005 and transferred its listing to the main market on May 28 this year, with a market capitalisation of $820 million from $33 million in 2005. Great Eastern Energy is engaged in the exploration and production of coal bed methane and is active in the CBM distribution network in West Bengal.
Prashant Modi today is a satisfied man and recalls how GEEC had to decide between the venture exchange at Toronto and the AIM to raise funds. ?But AIM suited us better. The laws were similar as India on the corporate side, which was encouraging. We had already done a small bit of PE and were looking for a bigger platform to raise money and get market access. In early exploration and production stage (E&P) it was the most suitable market to raise funds. 2005 was very different from today; it was not a very friendly market to raise money in India. For smaller companies resources were very limited.?
While comparing the regulatory process at AIM with the Indian exchanges, Modi says, ?It is far simpler and straightforward at the AIM. They take care of the same concerns as SEBI does here, but the process is more efficient. The visibility that it provided to the company made all the difference. If you perform well, it is for all to see.? However, Modi says the Government of India should change its policy, especially in E&P, to allow listing overseas without having to list in India before and those which are listed overseas should be allowed to raise money till they are eligible to list in India.