SKIL Ports & Logistics (SPL) has raised £76 million (US$121 million) through a placement of new ordinary shares on the London Stock Exchange’s Alternative Investment Market (AIM).
SPL was established by SKIL Infrastructure to develop, own and operate port and logistics facilities in India. Its share offering fetched the largest amount raised on AIM so far this year.
Pavan Bakhshi, managing director of SPL, said: “We are delighted to have completed this deal so successfully in challenging market conditions.”
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Dorsey & Whitney advised SPL on the offering. Its team was led by Matthew Doughty, a partner in the firm’s corporate practice. SPL’s adviser and broker, Cenkos Securities, was advised by Martin Finnegan, a partner at Nabarro.
“We are aware of a number of other Indian companies currently working on, or contemplating, a London listing,” Doughty told India Business Law Journal. “London institutional investors are clearly attracted by the macro-economic growth story of India.”
However, Doughty cautioned that this factor alone is not sufficient to achieve a successful listing. “Investors also look for a strong management team, a good track record, a growing and profitable business and strong corporate governance, among other things,” he said. “AIM is a particularly attractive market for high-growth companies. The IPO process is less heavily regulated than that for a London Main Market (or a Bombay Stock Exchange or National Stock Exchange listing) and once on the market, follow-on fundraisings for an AIM issuer can be done relatively quickly and cost efficiently.”
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