12 SMEs float IPOs in September... highest ever in single month
16 Oct 2014 11:15 PM GMT
The SMEs, most of them to be listed on Bombay Stock Exchange (BSE) SME platform, had come out with their intial public offering (IPO) to together raise atleast Rs 81 crore.
Top bourses — the BSE and the NSE — had launched dedicated platforms for SMEs in March 2012 to enable the listing of these firms and help them raise equity capital for growth and expansion in a cost-effective manner.
Among the 12 firms that hit the capital markets with their IPOs in September, Momai Apparels topped the chart with Rs 30 crore initial share sale. The firm is the only one proposed to be listed on NSE's platform for SMEs, NSE Emerge, among the 12 companies.
The remaining 11 IPOs — Naysaa Securities, Sirohia & Sons, Encash Entertainment, Ultracab (India), Aryaman Capital Markets, Atishay Infotech, Dhabriya Polywood, Starlit Power Systems, Vibrant Global Capital, Powerhouse Fitness & Realty, and ADCC Infocad — would trade on the BSE SME segment.
According to market experts, current market conditions are favourable for companies looking to mop up funds through the IPO route. BSE Managing Director and CEO Ashish Kumar Chauhan had recently said that as many 100 companies were expected to be listed on the exchange's SME platform by the year-end.
Currently, 70 companies are eligible for trading on the BSE SME platform and have an aggregate market capitalisation of a little over Rs 7,563 crore.
On the other hand, five firms are listed on the NSE. According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years.
In addition, the company should have got an investment of at least Rs 50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors. The data for September has been gathered through information available on the Sebi's website.
Meanwhile, fund raising via institutional investors seems to be gaining traction among Indian firms, with the total amount mopped-up through this route crossing Rs 20,000 crore-mark in the first half of the current fiscal.
According to a report by Prime Database, companies have raised a total of Rs 20,589 crore through Qualified Institutional Placements (QIPs) and Institutional Placement Programme (IPP) routes during April-September period of the current fiscal (2014-15), higher than a meagre Rs 5,402 crore garnered in the year-ago period.
Of the total fund raised, a massive Rs 20,171 crore were raked in through QIPs and remaining Rs 418 crore via IPPs. In the first six months of 2014-15, funds were garnered through as many as 20 issuance (19 QIPs and 1 IPP) as compared to 13 (3 QIPs and 10 IPPs) in the April-September period of the preceding fiscal.
Top bourses — the BSE and the NSE — had launched dedicated platforms for SMEs in March 2012 to enable the listing of these firms and help them raise equity capital for growth and expansion in a cost-effective manner.
Among the 12 firms that hit the capital markets with their IPOs in September, Momai Apparels topped the chart with Rs 30 crore initial share sale. The firm is the only one proposed to be listed on NSE's platform for SMEs, NSE Emerge, among the 12 companies.
The remaining 11 IPOs — Naysaa Securities, Sirohia & Sons, Encash Entertainment, Ultracab (India), Aryaman Capital Markets, Atishay Infotech, Dhabriya Polywood, Starlit Power Systems, Vibrant Global Capital, Powerhouse Fitness & Realty, and ADCC Infocad — would trade on the BSE SME segment.
According to market experts, current market conditions are favourable for companies looking to mop up funds through the IPO route. BSE Managing Director and CEO Ashish Kumar Chauhan had recently said that as many 100 companies were expected to be listed on the exchange's SME platform by the year-end.
Currently, 70 companies are eligible for trading on the BSE SME platform and have an aggregate market capitalisation of a little over Rs 7,563 crore.
On the other hand, five firms are listed on the NSE. According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years.
In addition, the company should have got an investment of at least Rs 50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors. The data for September has been gathered through information available on the Sebi's website.
Meanwhile, fund raising via institutional investors seems to be gaining traction among Indian firms, with the total amount mopped-up through this route crossing Rs 20,000 crore-mark in the first half of the current fiscal.
According to a report by Prime Database, companies have raised a total of Rs 20,589 crore through Qualified Institutional Placements (QIPs) and Institutional Placement Programme (IPP) routes during April-September period of the current fiscal (2014-15), higher than a meagre Rs 5,402 crore garnered in the year-ago period.
Of the total fund raised, a massive Rs 20,171 crore were raked in through QIPs and remaining Rs 418 crore via IPPs. In the first six months of 2014-15, funds were garnered through as many as 20 issuance (19 QIPs and 1 IPP) as compared to 13 (3 QIPs and 10 IPPs) in the April-September period of the preceding fiscal.
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