Upcoming IPOs: Strong Pipeline for Small Business IPOs SME BSE to See Over 60 Listings in One Year | Business News in India


NEW DELHI: More than 60 small and medium-sized enterprises (SMEs) are expected to tap the market in a year to raise equity to support their business needs, a senior ESB official said on Wednesday.
These companies will be listed on the stock exchange’s PME platform, said Ajay Thakur, head of BSE PME and Startup at PTI.
Last year, only 16 SMEs had tapped the Initial Public Offering (IPO) route and raised Rs 100 crore.
To encourage a culture of fairness among SMEs, Thakur said the exchange is taking proactive steps to host webinars, collaborate with state governments and other business associations.
During the pandemic, the exchange hosted around 150 webinars to educate SMEs about the benefit of equity financing and listing, he said.
According to Thakur, the lack of awareness of listing has led to many preconceived notions that listing involves increased levels of compliance and increased costs.
He believed that the listing will help SMEs to increase their visibility as well as build their brand; improve their credit rating, offer easy financing and growth opportunities.
“BSE SME has become the first SME platform where 400 prospectuses have been filed by SMEs. Of these, 337 are already listed and the remaining 63 will be listed within a year due to the ongoing pandemic, ”Thakur said.
Also last year, due to the many actions we took, we saw one company listed on the platform every month, he added.
Funds raised through the issuance 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 industries, such as IT, automotive components, pharmaceuticals, infrastructure and hospitality.
Over the years, the BSE PME platform has become the most cost-effective platform for small and medium-sized businesses to raise funds and create visibility, Thakur said.
ESB launched a platform for SMEs in March 2012 to offer these companies the opportunity to raise capital for growth and expansion.
Since then, a total of 337 companies have registered in its SME segment and have raised Rs.3,500 crore. These companies have a collective market capitalization of over Rs 26,300 crore.
Of these 337 companies, 99 have migrated to the main board platform.
In addition, around 10 to 12 companies are listed on the BSE startup platform, launched in December 2018, to facilitate funding for deserving startups by enabling them to raise capital in the market.

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