The Alternative Investment Market (AIM), an arm of the London Stock Exchange (LSE) which lost its sheen among India-centric companies, may slowly witness robust activity as experts believe that as many as 12 companies may get listed in 2008 itself. In fact, some of these companies are expected to enlist in the months to come.

In 2006, around $2.7 billion was mobilised from the AIM by 13 India-focused firms. However, 2007 saw a dip in the numbers after the Indian market regulator allowed Qualified Institutional Placements (QIP) and many firms opted to raise funds through this route. In 2007, only 9 India-centric companies were listed on the AIM, raising around $850 million.

However, there has been no India-centric company listed on the AIM since the beginning of the calendar year, and as on March 31, 2008, as many as 24 Indian-focused companies are listed on the AIM with a market capitalisation of $5.73 billion.

Mahad Narayanamoni, partner, transaction advisory services, Grant Thornton India, said, ?We are currently ?live? on 9 transactions and also in active discussions with several companies across the country about listing on the AIM market in the coming months.?

Experts also believe that India-focused firms are also tapping the AIM through the third country route which bestow tax relaxations on these companies. Cains, a law firm from Isle of Man, is one such preferred destination and Indian companies incorporated in the Isle of Man and listed on AIM represent a significant proportion of the Isle of Man’s AIM total with a combined market capitalisation of over ?2.2 billion.

Mike Edwards, director, Cains, said, ?Despite uncertainties in the capital markets, we are currently working with 5 Isle of Man companies, which hope to list in the next few months on the AIM with the proceeds of the listing being invested into assets in India.?

AIM also offers flexibility to companies to finish the due diligence of listing on the AIM and raise funds at a later period, which works well in such uncertain market conditions.

?Promoters can raise funds at a later period when they feel comfortable with the market conditions. Historically, liquidity of the AIM market has been a concern for Indian shareholders. However, when it comes to capital-raising, AIM remains an attractive option, particularly given the ease of follow-on issues, visibility it offers and the ability to move to LSE main board over a period of time,? added Narayanamoni.