Tech start-up listing: NSE considers tweaking SME platform

The National Stock Exchange (NSE) is considering tweaking its Emerge platform, essentially meant for small-and medium-sized enterprises (SMEs), to facilitate the listing of technology (IT)start-ups.

According to Vikram Limaye, chief executive officer at the NSE, technology start-ups have their own set of requirements and attract a particular set of investors, which is the primary reason Emerge needs some changes to accommodate their needs.

Currently, companies listed on Emerge are mainly from logistics services, media, automotive components, pharma, infrastructure and hospitality sector.

Technology-based companies are mostly silent.

“Over the next 12 months, there will be more listing of technology companies along with other SMEs”, Limaye said on the sidelines of an event organised by the Indian Chamber of Commerce here.

He said public listing of start-ups was a good way for a venture capitalist or a private equity investor to exit, while providing more liquidity for the company.

Moreover, listing might also boost their capital for growth, innovation and acquisitions. And, help them get better loan terms from banks or other investors.

The Emerge platform is a marketplace meant to bring convergence of sophisticated investors and emerging corporates and offers opportunities to informed investors to invest in emerging businesses, with exciting growth plans, innovative business models and commitment towards good governance and investor interest.

This platform, according to the NSE, has customised processes which help prospective issuers, including start-ups, metamorphose into listed public companies and provides fundraising opportunities to credible and fast-growing businesses with good governance standards.

According to Limaye, Emerge is an ideal platform for companies to raise funds but not large enough to list on the main board.

Over 150 companies are listed on this platform, which are estimated to have raised a total of Rs 22.21 billion from the listing process.

Five SMEs have listed this month on this platform, which includes Sonam Clock, Debock Sales and Marketing and Latteys Industries, among others. Three SMEs, which were listed on this platform, have been migrated to the main NSE platform recently.

Limaye said he was hopeful that listing of the NSE would be completed by the end of the current financial year. It is also on the lookout for acquisition of minority stakes in other bourses globally.