Four SME IPOs to hit capital markets this month

As many as four companies will come out with their initial share sale this month to raise a total of more than Rs 16 crore and eventually get listed on small and medium enterprises platform of the exchanges.
Vishal Bearings, Vaksons Automobiles and Bella Casa Fashion & Retail will launch their respective initial public offerings (IPO) on September 28, while Ahimsa Industries' public issue will open for subscription tomorrow.
Shares of all the companies would get listed on BSE's dedicated SME platform, barring Ahimsa Industries, which will list on NSE's Emerge platform, as per the prospectus of the companies filed with capital market regulator Sebi.

The public issue of Vishal Bearings and Bella Casa would close on September 30, while IPO of Vaksons Automobiles and Ahimsa Industries would close on October 1.
As per the draft papers, Vaksons Automobiles plans to raise Rs 6.24 crore, Ahimsa Industries intends to garner Rs 3.79 crore, Bella Casa would mop-up Rs 3.43 crore and Vishal Bearings would rake in Rs 3.24 crore.
The proceed of the issues would be utilised for working capital requirements and other general corporate purposes.

During April-July period, 14 SMEs got listed on capital markets with public issues worth Rs 113 crore. In comparison, nine SMEs had launched their IPO and raised a total of Rs 90 crore during the April-July period of the previous fiscal.

BSE and the National Stock Exchange (NSE) had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country.
The platforms provide opportunity to SME entrepreneurs to raise equity capital for growth and expansion.