Sterlite Industries, is set to become the first Indian metals company to have its primary listings in the UK. The Indian metals group is to float on the London Stock Exchange within the next two months. The group, presently quoted in Mumbai, is to move its primary listing and its headquarters to London.
Sterlite plans to float up to 25 per cent of the company, raising around $250m. The issue would value Sterlite at $1bn (£600m) and would be the most significant fund-raising on the London market this year.
Advised by HSBC and JP Morgan, Sterlite has decided to go ahead with the floatation despite there being no main market listings in London since last year. The idea behind the decision is that the company will achieve a better valuation in the UK than it does in India and will benefit from having a higher profile.
But, in order to establish itself here, Sterlite will have to restructure its board to suit UK corporate governance and appoint a news chief executive and finance director for its London venture.