Close to 45 per cent of the total manufacturing output and 40 per cent of the country’s exports is contributed by India’s SME sector. However, for majority of SMEs and growing businesses looking to scale up, access to finance has always been by far one of the greatest hurdles.
SEBI came out with detailed guidelines on 18th May, 2010 for launching of SME Exchange/Platform. BSE became the first stock exchange to get the approval from SEBI and launched its SME platform on 13th March, 2012.
Speaking at a seminar on ‘Emerging Role of IPO Platform for SMEs’ organized by the PHD Chamber of Commerce and Industry, Ashish Kumar Chauhan, Managing Director & CEO, BSE Ltd said, “Listing in exchanges leads to Wealth Creation. Through listing, SMEs will not only increase their market valuation but also gain in advantages of lower interest rates for funding their operations including easier access to quality investors”.
“Currently about 165 SMEs have listed themselves on BSE SME exchange and in next few weeks, another 20 companies are likely to be rolled in for listing. The listed SMEs step into the threshold of BSE SME Platform and foray in to the world of finance for further growth and development. BSE SME assists these SMEs to raise equity capital for their growth and expansion and thus help them blossom into full-fledged companies. In due time, we enable them to migrate into the main board of BSE as per the existing rules and regulations”, said Head-BSE SME, Ajay Thakur.
Sr. Vice President of PHD Chamber, Anil Khaitan assured BSE that PHD Chamber would persuade all its SMEs members to take a call for listing as it would strengthen their operations.
The seminar featured the success story of Tiger Logistics India Ltd, one of the listed SMEs on BSE Exchange. Speaking on the occasion, Chairman & Managing Director of Tiger Logistics India Ltd., Harpreet Singh Malhotra said, “Besides raising capital, listing builds reliability, helps rope in talent & enables competing with bigger players in the market”.
BSE SME Platform offers an investor friendly environment, which enables the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector.
Kulbhushan Parashar; Executive Director, India Member Firm of EY Global said, “Capital market listing can enable sustainable growth, the process is now much more simplified”.
Among others who spoke on the emerging role of IPO Platform for SMEs comprised Chairman and Co-Chairman, Capital Market Committee, PHD Chamber, D K Aggarwal and B K Sabharwal; Founder and Director, Corporate Capital Ventures Pvt. Ltd., Vishal Dhingra; Group Managing Director, Pantomath Advisory Services Group, Mahavir Lunawat and Chairman-Northern Region, Association of National Exchanges Members of India, Narinder Wadhwa.