27 SMEs have already filed IPO papers in 2016, target Rs 220 cr

To tap the upbeat market sentiment, as many as 27 small and medium enterprises (SMEs) have filed draft papers this year to raise funds totalling over Rs 220 crore through initial public offerings.

The shares will be listed on the SME platforms of BSE and the National Stock Exchange (NSE). Since the beginning of the year, 27 companies have filed draft documents to collectively raise over Rs 220 crore through IPOs, according to an analysis. Of these, 21 firms have filed papers to launch IPOs on BSE’s SME platform, while the six plan to list on NSE Emerge.

Moreover, six of these firms already got listed on the exchanges, while public offer of another SME will open for public subscription next week. Among the firms that have filed their papers with stock exchanges are Spicy Entertainment and Media, Sprayking Agro Equipment, Prabhat Telecoms, Shanti Educational Initiatives, Sagardeep Alloys and United Polyfab Gujarat.

These companies belong to a wide range of sectors, like logistics services, media, automotive components, infrastructure and hospitality, among others. According to market experts, increasing number of firms coming on SME exchanges send positive signals and lend a lot of confidence to SME capital markets.

“Filing of draft papers will send a positive signal to other SMEs which are keen to tap the capital markets. Listing will help them enter capital markets and finally to graduate on to mainboard,” Pantomath Group Managing Director Mahavir Lunawat said. “SME listing is not a business development initiative, rather market development initiative,” he added.