 "BSE SME bourse may see 10 more listings soon")
The BSE SME Exchange, the Bombay Stock Exchange's platform for small and medium enterprises (SMEs), will see a lot more SMEs listing, which in turn could create wealth both for the companies concerned and for the country, according to a top official of BSE.
A total of 42 companies have so far listed on the SME platform that BSE launched in March 2012. Another 10 are expected to be listed in a month's time, said Ashishkumar Chauhan, BSE's managing director and CEO.
"Listing in BSE has helped them to collect around Rs 350-400 crore and their market capitalisation is now in the range of Rs 2,500 crore or more," he said.
"We are seeing a lot more interest today. In the next one month we think we will have 10 more companies listed and they are at different stages of their IPOs. Every day literally, one or two entrepreneurs visit BSE with their merchant bankers," Chauhan said.
The exchange has a team that reaches out to SME clusters and works with banks and chambers of commerce to make people aware that this facility is available to entrepreneurs. It seeks to convince them that once an SME is listed, it becomes more disciplined, starts talking to investors as partners, and is taken more seriously. Also, when its issued capital grows above Rs 25 crore, it can automatically enter the main exchange without an IPO.
Whenever a BSE team goes on one of its road shows, it takes along an entrepreneur who has listed on the SME platform, who can talk about the issues he faced and the procedures that he had to go through to get his company listed. Entrepreneurs prefer to get information from a fellow businessman, rather than from officials of the exchange. The exchange has participated in at least 500 such programmes since it launched the platform, Chauhan said.
Listing on the BSE SME Exchange allows angel investors, venture capitalists or private equity firms also to exit, said Chauhan, who expects the number of companies listing to multiply by five to 10 times in the next couple of years.
A total of 42 companies have so far listed on the SME platform that BSE launched in March 2012. Another 10 are expected to be listed in a month's time, said Ashishkumar Chauhan, BSE's managing director and CEO.
"Listing in BSE has helped them to collect around Rs 350-400 crore and their market capitalisation is now in the range of Rs 2,500 crore or more," he said.
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Listing gives SMEs equity, which can help them get more debt from banks. It can also help them enlist partners. Besides, BSE provides facilities such as free research reports and market making, to ensure that investors are safe. An entire ecosystem is created, to support entrepreneurs and investors in the SME segment.
"We are seeing a lot more interest today. In the next one month we think we will have 10 more companies listed and they are at different stages of their IPOs. Every day literally, one or two entrepreneurs visit BSE with their merchant bankers," Chauhan said.
The exchange has a team that reaches out to SME clusters and works with banks and chambers of commerce to make people aware that this facility is available to entrepreneurs. It seeks to convince them that once an SME is listed, it becomes more disciplined, starts talking to investors as partners, and is taken more seriously. Also, when its issued capital grows above Rs 25 crore, it can automatically enter the main exchange without an IPO.
Whenever a BSE team goes on one of its road shows, it takes along an entrepreneur who has listed on the SME platform, who can talk about the issues he faced and the procedures that he had to go through to get his company listed. Entrepreneurs prefer to get information from a fellow businessman, rather than from officials of the exchange. The exchange has participated in at least 500 such programmes since it launched the platform, Chauhan said.
Listing on the BSE SME Exchange allows angel investors, venture capitalists or private equity firms also to exit, said Chauhan, who expects the number of companies listing to multiply by five to 10 times in the next couple of years.