The BSE SME platform has seen about 25 companies raising money to meet their business expansion and working capital requirements in 2016 as compared to 37 in 2015 and 38 in 2014.
According to industry experts, the number of companies tapping the SME platform could reach 80-100 by the end of this year as the growing awareness about its potential among entrepreneurs and the superior returns posted by listed firms in the SME platforms have started generating huge interest among various stakeholders including large brokerage houses and high net worth investors (HNI’s).
“Some of the listed firms in the SME platform have migrated to the main board while some firms have taken themselves to the next level of growth like diversification, mergers and acquisition among others. This has created greater degree of awareness and interest among their peers. Additionally, superior returns posted by some of these SME listed companies have led to large brokerage houses and HNI’s adding them to their coverage universe,” said Mahavir Lunawat, MD, Pantomath Capital Advisors.
Till date, BSE has listed 146 companies in its SME platform out of which 18 companies have migrated to the main exchange. On the other hand, the National Stock Exchange (NSE) has listed only 18 companies in its SME exchange.
Another interesting trend that has emerged in 2016 and expected to gather pace in the coming days according to Lunawat is the over subscription of SME issues. For instance, the Rs 1.31 crore IPO from Vidli Restaurants launched in February, 2016 was oversubscribed 7 times.
Similarly, the Rs 7.66 crore public offer from Commercial Sync Bags was oversubscribed 8 times and the Rs 2.17 crore IPO from Sysco Industries was oversubscribed 10 times.
Source: The Asian Age