Cash surplus SMEs are finding it more convenient to invest in fellow BSE-SME listed companies indicating the growing maturity of the BSE-SME platform.
A cursory look at the shareholding patterns of NBFC, Satkar Finlease Limited, listed in BSE-SME exchange, reveals that five BSE-SME listed companies have investments in Satkar Finlease.
While Edynamics Solutions and VKJ Infradevelopers Limited have a stake of 1.84 per cent each in Satkar, Amsons Apparels, Channel Nine Entertainment and HPC Biosciences Limited have each 1.5 per cent stake at Satkar.
What’s noteworthy is that the profiles of these SMEs are very different from each other. Amsons deals in fabrics, Channel Nine is a media and entertainment company, while HPC Biosciences is an agro-industry.
Analyst and MD of Varhad Capital, Prasad Dahapute, said, “SMEs do invest in each other. SMEs source their fund through family and friends. This shows that there is a vibrant start-up market, but certainly not like the Silicon Valley”.
Prasad also said that while banks funding has gone down for SMEs, these start-ups have tapped the equity market.
Alacrity Securities, a BSE-SME listed company has invested in yet another BSE-SME listed Oyeeee Media. Alacrity has a 1.28 per cent stake at Oyeeee Media. There is also an instance of cross holding between Alacrity Securities and fellow BSE-SME listed company, Naysaa Securities Limited.
Naysaa Securities holds a stake of 1.1385 per cent at Alacrity Securities, while Alacrity Securities holds, 1.8408 per cent stake in Naysaa Securities Limited.
Other instances of listed SMEs holding stakes in fellow listed SMEs are Dhanuka Commercial limited having been invested by Aryaman Capital Markets Limited. Aryaman holds a stake of 1.49 per cent at Dhanuka. Stellar Capital Services Limited holds a stake of 3.84 per cent at Aryaman Capital Markets Ltd, which is a subsidiary of Aryaman Financial Services Ltd. Stellar Capital reported in its Annual report of FY 2015 that it owns 4,60,000 Equity Shares of Rs 10 each fully paid up in Aryaman Capital Markets Limited. The annual report also mentioned that Stellar sold 3,18,000 of Shares in Telecom cable manufacturer, Suyog Telematics Limited, another BSE-SME listed company, during FY 2015.
