OVER 60 SMES POISED TO TAP THE MARKET IN A YEAR
NEW DELHI: More than 60 small and medium enterprises (SMES) are expected to tap the market in one year to raise equity funds for supporting their business requirements, a BSE top official said on Wednesday.
These companies will get listed on the exchange’s SME platform, Ajay Thakur, head of BSE SME and Startup told PTI. Last year, only 16 SMES had tapped the initial public offering (IPO) route and raised ₹100 crore.
To encourage the equity culture among SMES, Thakur said that the exchange is taking proactive measures to organise webinars, collaborate with state governments and other professional associations.
During the pandemic, the exchange has organised around 150 webinars to create awareness among SMES about the advantage of equity funding and listing, he said.
According to Thakur, lack of awareness about listing has led to a lot of pre-conceived notions that listing involves increased compliance levels and increased costs.
He opined that listing will help SMES to increase their visibility as well as brand building; improve their credit rating, provide easy finances and growth opportunities. “BSE SME became the first SME platform where 400 prospectuses have been filed by SMES. Of these, 337 have already listed and the remaining 63 will be listed in one-year time because of the ongoing pandemic,” Thakur said.
Last year, too, because of the several steps taken by us, we saw one company got listed every month on the platform, he added.
Funds raised through the issue will be used for business expansion plans, capital expenditures or working capital requirements and other general corporate purposes. These companies belong to a wide range of sectors, like IT, automotive components, pharma, infrastructure and hospitality.