Small and medium enterprises (SMEs) have raised a staggering Rs 660 crore through initial public offerings (IPOs) in the first half of 2017, more than three-fold jump from the preceding year’s same period.

The huge fund-raising can be attributed to reforms and initiatives taken by the government to improve credit rating, reduce finance cost, and added valuations through listings to encourage the SME sector.

A total of 50 companies got listed with IPOs worth Rs 660 crore during January-June 2017 as compared to 27 firms which tapped the IPO route to garner Rs 211 crore in January-June 2016.

Funds raised through the issue were used for business expansion plans, working capital requirements and other general corporate purposes.

Continuing the last year’s legacy, Gujarat remains at the top with 22 companies listed on the SME platforms of stock exchange markets, followed by last year’s runner-ups Maharashtra with 15, Rajasthan with 4, and West Bengal and Delhi with two firms each contribution.

Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country. Since then, 186 companies have got listed on BSE and 61 on NSE, of which some have even shifted to the main board.

The two platforms provide opportunity to SME entrepreneurs to raise equity capital for growth and expansion. They also provide immense opportunity for investors to identify and invest in good SMEs at an early stage.