BSE SME Head bats for equity funding at IIA Noida forum on new avenues for raising finance

April 07, 2017 | Access to finance is the most important factor for the growth of any SME and Bank loans is the most common source of finance. While bank financing will continue to be crucial for the SME sector, new options like equity financing is slowly but surely finding its way amongst SMEs.

At an event organized by IIA Noida Chapter on ‘Avenues for Raising Funds for SMEs’, Ajay Thakur, Head BSE SME said, “Mother of all funds is equity fund. It is a currency at the hands of the promoters. Listing in exchanges leads to Wealth Creation”.

What difference do IPO listing bring about amongst SMEs? A very basic, but an important question. Speaking on this aspect, Ajay Thakur said, “Within six months of listing, a company needs to file its balance sheet. So first and foremost, the promoter shows transparency in the company. Secondly, companies start focusing towards profitability, because this increases their value in market. SMEs start shaping up a profit generating business model. SMEs start exploring new areas and opportunities. This transforms the entire look and structure of the enterprise”. Listing leads to uplift in the business, profits, valuation and investor confidence.

Gracing the evening as the Chief guest of the event, Noida’s MLA Pankaj Singh said, “SMEs are the growth engine of Indian economy, this is a well known fact. I have pledged to develop Noida as a digital economy city along with ease of doing business provisions for its small scale industries.”

IDFC Bank’s Associate Director Umesh Nazkani said, “SMEs are an integral part of corporate and one of our prime focus are at IDFC. We have and will continue to finance SMEs under the CGTMSE scheme of the government.” The bank has been an integral part of the country’s development story since 1997, when it was formed with the specific mandate to build the nation. Today, IDFC bank offers a wide array of solutions to MSMEs across the country.

SIDBI General Manager S P Singh informed the gathering that SIDBI is the first bank in India to disburse 10,000 crore loans to SMEs. He also spoke about how SIDBI Startup Mitra is intended to scale up its initiatives in developing MSMEs and in helping entrepreneurs to get connected with various stakeholders like incubators, angel investors, venture capital funds and other fund providing agencies.  The initiative is in line with the objective of the government in forging innovation-led growth through various measures.

On the sidelines of the event, speaking exclusively to SMEpost.com on the proposed New Industrial Policy of Uttar Pradesh, BSE SME Head Ajay Thakur said, “A good policy, ease of doing business and a proper balance of equity with debt funding will together encourage an industrial scenario within UP. This way SMEs will grow at a much faster pace within the state. In coming future BSE SME will also play even more attention towards the region and its SMEs to encourage and develop an ecosystem of IPO listing among small companies.”

Describing the event as extremely successful, Noida-Chapter Chairman of IIA, Rajiv Bansal said that the association is promoting digitization of SMEs. Bansal appreciated the decision of the Uttar Pradesh government to create a new industry policy and also handed over a memorandum on the problems faced by MSMEs on behalf of IIA to Pankaj Singh.

Indian Industries Association (IIA) is an apex representative body of Micro, Small and Medium Enterprises (MSMEs). IIA’s formidable presence is the direct result of its extensive network of more than 40 chapters spread in most of the industrialized districts of U.P and surrounding region having membership strength of close to 10,000 members.