Seven SME IPOs to hit capital markets this week

A total of seven companies are coming out with their initial share sale this week to collectively raise over Rs 28 crore and eventually get listed on small and medium enterprises platform of the exchanges.
The initial public offerings (IPO) of Vaksons Automobiles, Bella Casa Fashion & Retail and Vishal Bearings opened today, while Cawasji Behramji Catering Services will launch its public issue tomorrow.
Besides, public offerings of Tejnaksh Healthcare, Patdiam Jewellery and Franklin Leasing and Finance will open for subscription on Wednesday.
Shares of all these companies would get listed on BSE's dedicated SME platform, as per the prospectus of the companies filed with capital market regulator Sebi.

"So far, more than 100 companies have listed on both the SME platforms of BSE and NSE. Their success has created interest in promoters and entrepreneurs," Hem Securities Director Gaurav Jain said.
"These companies are not from one state and belong to various sectors like manufacturing, catering, jewellery and healthcare. Such diversity of location and sectors only indicates that finally the scattered SMEs are paving their way towards wealth creation," he added.

The public issue of Vishal Bearings and Bella Casa would close on September 30, while IPO of Vaksons Automobiles would close on October 1, initial share-sale of Cawasji Behramji and Patdiam Jewellery is schedule to close on October 5.

The IPOs of Franklin and Tejnaksh Healthcare would close on October 6 and October 12 respectively.
As per the draft papers, Franklin plans to raise Rs 6.34 crore, Vaksons Automobiles intend to collect Rs 6.24 crore, Patdiam Jewellery would mobilise Rs 5 crore, Bella Casa would mop up Rs 3.43 crore.
Vishal Bearings would rake in Rs 3.24 crore, Tejnaksh Healthcare would mop-up Rs 2.43 crore and Cawasji Behramji plans to garner Rs 1.86 crore.
Ahimsa Industries' IPO, which is already open for subscription, will close on October 1. The company is aiming to mobilise Rs 3.79 crore.
The proceed of the issues would be utilised for working capital requirements and other general corporate purposes.

During April-July period of the current fiscal, 14 SMEs got listed on capital markets with public issues worth Rs 113 crore. In comparison, nine SMEs had launched their IPOs and raised a total of Rs 90 crore during the April-July period of 2014-15.
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.