18 cos to migrate to BSE main board from SME platform in 2015-16

Since the establishment of the platform in 2012, 94 SMEs have been listed on the exchange

Eighteen companies listed on the Small and Medium Enterprise (SME) platform of the BSE exchange are likely to migrate to its main board this financial year, said a senior official of the bourse.

The exchange, marketing aggressively to increase the listing numbers on its platform, is expecting three-fold growth in daily turnover by end-March 2016.

“Till date, six companies have already shifted to the BSE main board. They were eligible to migrate from the SME platform and 18 more are likely to graduate by (March),” said Ajay Thakur, head of the BSE SME exchange.

Since the platform’s establishment in 2012, as many ass 94 SMEs have been listed. Off these, six have migrated to the main board.

A NEW BEGINNING

• Out of 94 companies, six migrated to main board this year
• Companies that have completed two years and have post-issue paid-up capital of Rs 10 crore-plus are eligible for migration
• BSE-SME exchange expecting threefold growth in daily turnover from Rs 25 crore to Rs 75 crore by March 2016
• Targeting listing 100 companies this year
• More than 32 companies filed a proposal to be listed on the SME platform

Thakur said, “The SME exchange will assist (all) these (companies) to raise equity capital for their growth, and help them blossom into full-fledged companies. In due time, the exchange will enable them to migrate to the main board.”

By the existing norms, companies that have completed two years on the SME platform and achieved a post-issue paid-up capital of Rs 10 crore and above are eligible for migration. If the paid-up capital exceeds Rs 25 crore, it is required to migrate to the main board. If between Rs 10 crore and Rs 25 crore, it has the option to continue on the SME platform or move.

Many entities are evincing interest to get listed on the SME platform. Thakur said, “The current daily turnover is Rs 25-30 crore on the exchange, which might cross Rs 75 crore by the end of this year.”

With far easier listing rules and a significantly smoother regulatory mechanism, 32 companies have reportedly agreed to get listed. An exchange official had recently said they were targeting listing of 100 companies by next March.