Indian firms look to raise over $1 bn in Japan

Written by Jash Kriplani | Mumbai | Updated: Oct 18 2014, 07:06am hrs
Indian companies are increasingly showing interest in fund-raising opportunities on the Tokyo Stock Exchange with as many as five of them in talks with the exchange to tap the Japanese market.

Earlier, three Indian companies had registered strong interest with us. Now, there are five companies who have shown interest. Put together, they are looking to raise over a billion dollars, said Kapil Malhotra, MD, Total Solutions, who hosted a delegation of Tokyo Stock Exchange (TSE) officials earlier this month in India.

During the three-day visit to India, Hidetoshi Nagaya, GM Head of Global Listings, Tokyo Stock Exchange, along with Junichiro Goto, manager of New Listings, Tokyo Stock Exchange, met a number of large and small & medium Indian companies. On October 7 and 8, several leading business houses presented their profiles to the Tokyo Stock Exchange.

According to Nagaya, the listing process takes at least one year in terms of equity listing. However, if companies are interested in tapping the debt markets, a bond can be floated in a month's time. According to the presentation made by the TSE officials at an earlier press conference, as many as 12 foreign companies have listed their shares on the Tokyo Stock Exchange but none from India. However, ICICI Bank had listed its programme on TOKYO PRO-BOND Market in June, 2013.

Malhotra added, This opportunity has caused great excitement in the Indian business community as it opens the door to one of the most liquid and third highest turnover stock exchanges in the world. We are positive that the TSE is opening the doors for the vibrant Indian business community to the Japanese Capital Markets. The Indian economy is definitely going through an interesting phase wherein it has completed its metamorphosis into becoming the most influential business market in the world. This is an excellent opportunity for promoting economic growth for both India and Japan.

While names of the companies could not be ascertained, companies from e-commerce, real-estate and biotech space have shown interest.