DWS leads Rolta India through its London Stock Exchange flotation

Denton Wilde Sapte (DWS) has landed the lead mandate for new client Rolta India on its landmark flotation on the London Stock Exchange (LSE).

DWS won the work because one of its partners, who was familiar with Rolta, introduced the company to the lead mangers. However, DWS was forced to pass the US aspects on the flotation to Linklaters.

Rolta, a specialist IT company, started trading on the LSE last week in a listing that raised around $103.5m (£71.7m) for the company. It issued 18.48 million global depository receipts (GDRs).

The listing made Rolta the first, and one of the largest, Indian companies to float on the exchange since the introduction of the EU Prospective Directive on 1 July 2005.

Banking and finance partner Farmida Bi led the DWS team, assisted by Vivien Lau-Amorgianos.

Linklaters, led by partner Stephen Edlmann, advised lead mangers Cantor Fitzgerald and Lehman Brothers.

The magic circle firm was brought in because Rolta wanted to access the US market through its listing. Therefore the prospectus required extra due diligence opinions in order for US investors to purchase the GDRs under Rule 144A.

The EU Prospective Directive, which requires more onerous financial disclosure for listed companies, has prevented many Indian firms from floating on the LSE because they base their accounts on Indian Generally Accepted Accounting Principles (GAAP)
However, Rolta uses international GAAP and so was able to comply with the new, stricter regime.