Millennium Post

SMEs’ April-January IPO fund receipts cross full-FY15 figure

To tap the upbeat investor sentiments, as many as 34 small and medium enterprises (SMEs) got listed on capital markets with initial public offerings worth Rs 287 crore in the first ten months of current fiscal. 

This was higher than 39 SMEs raising a total of Rs 278 crore in the entire past fiscal (2014-15), according to the data available with Sebi.

Moreover, total fund raising for the ongoing fiscal is expected to increase as many companies have filed draft documents in February and March to tap the initial public offer(IPO) route.

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. “Listing will help them enter capital markets and finally to graduate on to mainboard,” Hem Securities Director Gaurav Jain said.

“We are looking forward to a number of IPOs from different cities in the next 6-8 months, which will join the club of listed companies. It will send a positive signal to other SMEs which are keen to tap the capital markets,” he added. 

The companies which got listed in the ongoing fiscal are from sectors such as logistics services, automotive components, infrastructure and hospitality, among others.

BSE and NSE had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country. 

Since then, several companies have got listed on them and some have even shifted to the mainboard.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.
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