As many as 23 small and medium enterprises have lined up their initial public offers (IPOs) to fund business expansion and meet working capital requirements. These companies, which are planning to list on BSE’s SME platform, are expected to float IPOs in the coming months.
The exchange has already given go-ahead to 10 SMEs, while another 13 have filed their draft offer documents with BSE and are awaiting its approval, the bourse said in a statement.
Listing will help these companies to enter capital markets and finally to graduate on to the mainboard.
BSE MD and CEO Ashishkumar Chauhan, last week, said that exchange expects 30 IPOs on its SME platform in the next three months. SMEs which have lined up their public offers include Trine Entertainment, Monarch Apparels (India) Ltd, Shareway Securities, Narayani Steels, Octaware Technologies, Worth Infra Industries, AGI Hospitalities, Darshan Orna, Yash Chemex and Advance Syntex.
BSE launched SME platforms in March 2012 and since then, 137 companies got listed on the platform and together raised Rs 1,004.05 crore. Of these firms, 18 companies have migrated to the main board platform and currently, there are 119 companies listed on the SME platform.
As per the norm, companies looking to list on the BSE SME platform required to have post-issue paid up capital of a minimum Rs 3 crore. Besides, they need to have a networth of at least Rs 3 crore (as per the latest audited financial results) to qualify for listing on the segment.
SMEs list themselves on bourses for easy access to capital, enhanced visibility, growth opportunities, exit route for old shareholders, among others. After meeting required norms, SMEs can seek migration from SME Exchange to main-board.
Small and medium-sized enterprises (SMEs; sometimes also small and medium enterprises) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. SMEs are also said to be responsible for driving innovation and competition in many economic sectors.