Bengal signs MoU with BSE to make MSME entrepreneurs aware of IPO listing benefits
Kolkata: With Bengal standing fourth in the country in terms of listing of companies in BSE SME platform, the Mamata Banerjee government has signed a Memorandum of Understanding (MoU) with Bombay Stock Exchange (BSE), to create awareness among Micro, Small and Medium Enterprises (MSME) entrepreneurs in the state, about benefits of Initial Public Offer (IPO) listing.
It may be mentioned that till now, 18 companies from Bengal have been listed. The number is expected to go up by another 10 to 15 in the next six months.
With the 18 companies, Bengal stands as the fourth ranking state in the country to get companies listed to BSE, after Gujarat, Maharashtra and Delhi.
Moreover, two companies from Bengal have gone to the main board from the SME platform.
In the State MSME Conclave, the MoU was signed with an aim to spread awareness among MSME entrepreneurs about the benefits of listing. As per the MoU, the state Micro, Small and Medium Enterprises and Textiles department, in collaboration with chambers of commerce and industries, business associations and BSE, will take up hand-holding workshops and seminars to create awareness.
Apart from getting listed to the SME platform, there will be further encouragement in tapping domestic capital markets to leverage alternative options for access to capital for expansion and growth and gain visibility at the national level. BSE will provide intellectual and manpower support in such awareness programmes.
Understanding the importance of MSME enterprises for the growth of the country's economy, BSE had launched the SME platform in March 2012 and at present, BSE SME is having a market share of 70 percent.
Ajay Thakur, Head of the BSE SME platform, said: "The awareness about the benefits of listing on SME exchange is less. There has been a myth that only large companies can get listed. Bengal being the largest hub of SMEs, will benefit immensely because of this MoU, which will facilitate the SMEs of the state in coming on BSE SME Platform and raise funds, which will further help them in unlocking their value, help in marketing and brand building. This will also help in creating strong balance sheets and increasing transparency in the company."
At the same time, there are around 6 companies in the SME platform of National Stock Exchange (NSE), which have also had an MoU with the Bengal government on Tuesday. The number of companies to get listed to the SME platform of NSE is also expected to increase in the next few months.
