BSE SME platform investors get handsome returns

The BSE SME platform has succeeded in creating wealth for its investors as over 90% of 34 listed companies are trading above their target price, a top official of the exchange has said.

BSE was the first stock exchange in the country to launch an exclusive BSE SME platform last year offering a great opportunity to entrepreneurs to raise equity capital for expansion and acquisition. It helped the SMEs to create visibility, strong balance sheet, credibility and wealth creation.

"The BSE SME platform has enabled wealth creation for 34 companies by helping them raise over Rs 307 crore since the inception in March 2012. Over 90 % of the listed companies are trading above their target price creating wealth for the investors," BSE MD & CEO Ashishkumar Chauhan told PTI here.

As of September, 2013 the total market capitalisation of the listed companies SSEs stands at Rs 1,986 crore, he said.

Among select companies, Looks Health Services quoting at Rs 302 against the issue price of Rs 40 has given 655% return.

Among other shares, GCM Securities gained by 595%, SRG housing 415%, Max Alert Systems by 360 %, Comfort Commotrade by 170 %, RCL Retail 114 %, Eco Friendly Food processing 236%, HPC Biosciences 222%, Samruddyhi Realty 194 % and Ashapura Intimates Fashion 105%.

The BSE SME platform has got 91% market share and the exchange hopes to list 13 more companies in the near future, Chauhan said, adding that the issue price of companies listed are in the range of Rs 10 to Rs 40 and the issue size is in the range of Rs 2.5 crore to Rs 28.5 crore.

SME IPO index launched in December 2012 with 100 as base and the value as on September 26, 2013 is 342.93 points.

Chauhan pointed out that the Index aims to track primary market conditions in the Indian capital market and measure growth in investor investments in SME equities over a period of time.

"The MSME sector contributes to around 40 percent of India's exports and employs about 80 million people. The small companies coming under this sector face several difficulties in their quest for growth," the CMD said.

This segment forms a major part of India's industrial base. If India is to attain its aspiration of double-digit growth rates and a reduced poverty ratio, greater focus on the well being of the Small and Medium Enterprises (SME) sector becomes a necessity, he said.

BSE has taken various steps for creating awareness among the entrepreneurs, intermediaries and investors about the SME platform.

"We are doing seminars with FICCI, CII, IMC, D&B, ICAI and ICSI and many other industrial associations at state and central level. This has created a lot of interest among the entrepreneurs and they are coming forward to get listed on BSE SME platform," Chauhan said.