Rs 236 cr raised by SMEs via IPOs in April-Jan

During the current fiscal, stock exchanges saw 12 inital public offers in September on the SME platform, the highest for a month

According to recent data, as many as 30 small and medium enterprises (SMEs) listed on the stock market in the first ten months (April-January) of 2014-15, raising Rs 236 crore. In comparison, 26 SMEs had launched initial public offers (IPO) and raised a total of Rs 257 crore during the same period of 2013-14.

These companies are from sectors like trading, manufacturing, steel, textile and finance and are spread across the geography of India, according to a report by Knowledge and News Network, a media platform that focuses on micro, small and medium enterprises.

During the current fiscal, stock exchanges saw 12 IPOs in September on the SME platform, the highest for a month. The total funds garnered by these companies stood at Rs 90 crore. Four SMEs came out with an IPO in November, while three IPOs each were seen in May, June and July. Some companies have even seen their share price jump more than four times since listing, the report said.

While this additional listing opportunity allows smaller players to improve their visibility, broaden their investor base and improve their fund-raising abilities, it also allows the unorganised sector scattered throughout India to become a regulated and organised sector, the report added.

In March 2012, both BSE and NSE launched platforms for small and medium enterprises aimed at entities looking to raise equity capital through venture funds, private equity and wealthy individuals. BSE’s SME platform has 82 companies, with a total market capitalisation of Rs 7,586.67 crores, while NSE has six SMEs listed on its platform, called Emerge.