NSE asks startups to list on exchange, offer exit to investors

India has over 1,400 PE and VC backed companies with majority of recent exits by venture firms having been mergers and acquisitions to derive value to investors

The National Stock Exchange has begun tapping startups to list on its platform, offering them the opportunity to allow private equity and venture capital firms to exit and raise funds from local investors.

The exchange also wants to replicate the success of over 100 small and medium enterprises that have raised funds since its launch. In the last year, over companies have raised over Rs  67,000 crore from primary markets, 70 per cent of them offering exits to private equity firms in new age sectors such as e-commerce, food technology, energy exchanges and security, said Vikram Limaye, MD & CEO, NSE at a conclave for startups here.

"Most of the issues were massively oversubscribed," he said. "Indian markets offer a good platform for new age companies for growth capital across phases as well as mature companies who have investors looking at exits".

India has over 1,400 PE and VC backed companies with a majority of recent exits by venture firms having been mergers and acquisitions to derive value to investors.

"Decision of listing is also difficult one for startups. Life of the listed companies with it compliance, scrutiny and pressures of delivering results quarterly, There are also advantages of a public company," Limaye said.

"We are committed towards providing a robust fund-raising ecosystem for these companies for addressing their next phase funding requirements as well as enabling them to unlock their valuation potential in India. NSE Tech Conclave is the beginning of a new relationship between the capital markets and the start-up ecosystem," he said 

New-age companies with their technological capabilities and innovative ideas are all set to transforming the Indian economy and we are committed to partnering them in their growth journey, Limaye added.