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SMEs raise Rs 290 crore through IPOs in 2015-16

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Press Trust of India New Delhi
Last Updated : Apr 05 2016 | 2:57 PM IST
Riding on upbeat market sentiment, as many as 44 small and medium enterprises (SMEs) got listed on capital markets with initial public offerings worth Rs 290 crore in the past fiscal.
This was higher than 37 SMEs raising a total of Rs 271 crore in 2014-15.
"The number of firms that filed their draft prospectus as also those getting listed on SME bourses is increasing every year and that trend is expected to continue in 2016-17 as well," Pantomath Group Managing Director Mahavir Lunawat said.
A total of 44 firms made debut on the SME platform in 2015-16 while a total of 66 companies filed their draft prospectus in the past fiscal to raise funds through an initial public offering (IPO).
Out of 44 companies listed, Maharashtra and Gujarat both contributed 15 companies each.
The funds raised through the issue were used for business expansion plans, working capital requirements and other general corporate purposes.

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According to market experts, an increasing number of firms logging into SME exchanges sends positive signals and lends a lot of confidence to SME capital markets.
"The financial year 2015-16 witnessed a very encouraging participation from SMEs. The number of companies getting listed on SME platforms increased despite tightening of norms," Lunawat said.
However, the number of companies engaged in financial services declined due to tightening of eligibility norms by BSE, he added.
The companies which got listed in the past fiscal are from sectors such as agriculture, realty, NBFC (non-banking finance company), manufacturing and services, among others.
BSE and NSE had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country. Since then, several companies have got listed on them and some have even shifted to the mainboard.
The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

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First Published: Apr 05 2016 | 2:57 PM IST

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