The Small and Medium Enterprises (SME) Exchange, promoted by the Bombay Stock Exchange (BSE), is expected to begin operation by March.
“We are trying to launch it within March, but I could not say whether it will be before or after Union budget slated to be presented on March 14”, said Lakshman Gugulothu, Chief Executive Officer.
He was speaking at a seminar on “Listing on SME Exchanges; a new opportunity for raising capital” organized by Cuttack Management Association.
He said, “depending on the availability of the Union Finance minister, we will launch the SME bourse as he will inaugurate it”.
The senior official also exuded confidence on the future of SME units in the eastern India. “The response from eastern India is very encouraging and we are eyeing more and more entrepreneurs to get listed in the exchange”, he said.
Meanwhile, Mumbai based non-banking finance company, BCB Finance is entering capital market with a public issue of 35.4 lakh equity shares of face value of Rs 10 each on February 23.The company will raise Rs 8.85 crore through the issue, which will close on February 27.
Gugulothu said that approval has already been given to six SMEs to enter the capital market and seven more are in the pipeline.
“We are targeting small industrial towns and cities like Dehradun, Jamshedpur and Haridwar in Uttarakhand to encourage them to raise capital through the SME Exchange,” said Gugulothu.
The SME Exchange offers some relaxations. SMEs with a post-issue paid-up capital of up to Rs 25 crore can list on it.
Issues on this platform will be 100 per cent underwritten and merchant bankers will underwrite 15 per cent on their own account. Also, there will be three years’ support in the secondary market through market making activity.
Speaking on the occasion, T Ramchandru, President of the association and Chairman and Managing Director, Industrial Development Corporation of Orissa Limited (Idcol), said that banking response is worst in the state and urged the entrepreneurs to get listed in the SME exchange for raising funds.
