In order to help SME entrepreneurs raise equity capital for growth and expansion in a cost effective manner, BSE SME Platform offers the unorganised small scale sector to blossom into full fledged companies at a later stage by migrating into main board of BSE. Kailash Rajwadkar spoke to Ajay Thakur, Head, BSE SME to gain an insight into the current scenario and the outlook ahead.
Q : How did BSE SME Exchange fare in calendar year 2015 in terms of raising capital and also in terms of market capitalization as also the number of companies?
A : The calendar year 2015 has been a good year for BSE SME, The companies have stared approaching us for listing on BSE SME Platform. In this calendar year we have listed around 35 companies and these companies raised Rs 201.51 crore from the public. Currently, 107 companies listed on BSE SME platform have a market capitalization of Rs 6889.60 crore.
Q : How many more SME companies are already in the pipeline for listing and what is their potential fund raising requirement?
A : Currently we have 26 in pipeline and they are in various stages of listing process. The basic objective of these companies is to meet their working capital requirements and expand their business activity.
Q : What is your outlook for calendar year 2016 in terms of the number of more companies getting listed on the BSE SME Exchange and the fund that they might raise?
A : We have received a good response in 2015 and we believe that in 2016 we will receive same kind of response from SME companies. So far in this calendar year we have listed 35 companies and another 26 companies have filed their papers with us. In 2016 we are planning to get 50 more companies on board with us.
Q : What is the broad trend that you have noticed with respect to the reason or rationale for SME companies that are already listed on your platform?
A: We have seen a lot of positive development in the companies which are listed on the BSE SME platform such as Increase in corporate governance, fund mobilization, growth in the business, increased visibility for the company and wealth creation for all the stakeholders.
Q : Do you see any potential regulatory or policy hurdle for SMEs staying away from listing themselves on the SME exchanges?
A: We do not see any regulatory or policy hurdle for the SME companies as such but there is lack of awareness and understanding of Capital Market among the promoters.
Q : Are there any plans to simplify the eligibility criteria for listing of SMEs and what are you doing to address the concerns of SME to encourage them to list on your platform?
A: The eligibility criteria have been kept simple and conducive to the growth oriented SME companies. However lack of awareness and benefits of listing have stopped them from coming up to stock exchange.We as an exchange are trying to bring about awareness and encourage SME to get themselves listed by doing seminars along with various Industrial Associations, SME Forums, ICAI, ICSI, Regulatory bodies and Chamber of Commerce to create awareness about this platform. We have done more than 400 seminars across India we are also actively in touch with, entrepreneurs, and various classes of investors including P.E’s, Angel investors etc. to create awareness about the BSE-SME Platform.
By Kailash Rajwadkar
