London Stock Exchange's AIM is fast emerging as a preferred fund raising hub for India- focused firms, with as many as 25 such companies boasting a combined market cap of over seven billion dollars have so far been listed on the bourse, a report says.

"At 30 June 2008, a total of 25 India-focused companies were listed on the Alternative Investment Market (AIM), with a combined market cap of over 7 billion dollars," Grant Thornton said in its report on global markets -- The Changing Face of World Finance.

This year, there have been four listings of India-focused businesses on the AIM -- Mortice Ltd, OPG Power Ventures Plc, KSK Emerging India Energy Ltd and Indus Energy Plc. Besides, a further five listings seem imminent in the coming months.

Some of the key drivers behind this preference are – UK -based investors understanding of Indian economy and businesses, relative ease of listing on the AIM compared to the Bombay Stock Exchange or the National Stock Exchange, the report said.

Besides, better valuations for some specific sectors on the AIM compared to the Indian capital markets and visibility that comes with listing in London for India-focused businesses with global operations connections also play a major role.

"The outlook for India-focused businesses looking to list on AIM depends largely on the global outlook for IPOs in general. However, companies operating in specific sub-sectors within infrastructure, healthcare and those with niche product or service offerings should continue to find favour with AIM investors," Grant Thornton Partner Mahad Narayanamoni says.