220 crores to be raised by 27 SME companies on SME platform in 2016 alone

Small and Medium Enterprise is one sector which is key growth factor for a nation like India, as it employs about 70 million people through its 30 million enterprises. The mood at the BSE SME reflects the bullishness in the sector as highlighted by the new companies getting listed on the exchange. So far in the year 2016, almost 27 companies have filed papers for IPO to mop up 220 crores. Out of the 27 companies 20 companies will be listing themselves on BSE SME platform and 7 will be getting listed on the NSE .For the year 2015, 46 companies got themselves listed on the BSE garnering Rs.327 crore. The total number of companies listed till date on BSE SME platform is 135 and the number is growing fast.

The interesting part is the wider participation from different sectors. Logistics services, media, hospitality, infrastructure and automotive components are among the few sectors getting represented by companies on the SME platform. The increasing number of companies getting listed can only boost confidence for major SME companies sitting on sidelines, waiting to see their companies get listed on bourses. The SME platform provides excellent opportunity to SME entrepreneurs to raise capital in the form of equity and repair their debt to equity ratio. This listing exercise will allow the SME companies to operate at optimal capital structure. At the same time it provides ample opportunity for investors to invest in stocks at an early stage.

BSE is the first stock exchange in the country to get permission from SEBI to launch the SME platform in September 2011. BSE SME platform intends to reach to all categories of investors including venture capitalists, HNIs, institutional investors etc.A number of SMEs have potential to grow into big companies provided they get the required capital. Thus SME platform creates a win-win situation for both investors and SME companies looking to raise capital.