Introduction to BSE SME Platform, Initiative for raising equity capital for SMEs
Share India Securities Ltd, a leading knowledge and technology driven stock broker, in association with Bombay Stock Exchange (BSE), conducted a SME focused programme to encourage, educate and familiarise the small and medium companies about raising funds for growth through IPO route and listing on BSE SME platform.
Chief Guest Mr R. S. Sachdeva, Chairman, Punjab Committee, PHD Chamber, MD Hi Tech Industries Ltd, guest of honour Mr. Ajay Thakur, Head, BSE SMEgraced the occasion along with MrSachin Gupta, Managing Director, Share India Securities Ltd and MrAbhinav Gupta, Vice President, Share India Securities whomade presentation on SME Primary Market Platform, listing process and criteria, opportunities and addressed the audience.
Commenting of the initiative Mr Sachin Gupta, Managing Director, Share India Securities Ltd said, “Getting a company listed is a significant milestone for an entrepreneur and the pinnacle of his entrepreneurial journey.Listing provides credibility which is very important for successful business and corporate reputation. The ability to raise funds, greater visibility, enhancing credibility, and increased discipline are just some of the key benefits. You need to ensure profitability, consistency, and ensure all corporate governance practices are in place within the firm before you can take it public. The process involves detailed scrutiny of each and every aspect of the company. Therefore, a listing is almost a validation – you are publicly disclosing that the company is going in the right direction”
“SME is a capital-starved sector and needs huge capital to strengthenitself.The access to equity capital has certainly been one of the strong points which is why you are seeing a very robust pipeline of SME IPOs. The awareness created in the market about growth opportunity in these companies is attracting investors. The change has been phenomenal. Earlier, SMEs had to perennially be dependent on debt for their funds requirements.Access to equity capital is a game changer for the growth of the SMEs in the country.SMEs need to realize and understand the importance of equity capital andembrace the idea of raising funds through IPO route. We as a leading stock broker and market participant are taking lead in creating awareness and expanding our operations to take care of SME sector growth opportunities and working towards helpingSME corporates to raise funds through this platform”said Mr Gupta.
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Mr. Ajay Thakur, Head, BSE SME said”The equity culture is not strong in many regions, smaller cities and towns. We are trying to convince promoters through our aggressive campaigns to use SME IPO route to fund growth.BSE SME which is the largest and fastest growing SME Platform in India, has helped 217 SME companies raise funds and these SMEs have really got benefited from this platform. We are encouraging more SMEs to come out with IPO which is a great source of funds. This is also a good gateway for eventually getting listed on the main platform of the stock exchanges as 41 listed SMEs have also moved to main Exchanges because of their growth in the last couple of years”
“Indian SMEsector has emerged as a highly vibrant and dynamic sector of the Indian economy over the past few years. SMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural areas. With the Indian economy expected to emerge as one of the leading economies in the world and likely to become a $5 trillion economy by 2025, major impetus is being given to strengthen the backbone of our economy – the SME sector.” Mr. Thakur added.
About BSE SME Platform : SEBI came out with detailed guidelines on 18th May, 2010 for launching of SME Exchange/Platform. BSE became the first stock exchange to get the approval from SEBI and launched its SME platform on 13th March, 2012. BSE SME is the largest and fastest growing SME Platform in India. It is the first SME Platform in India where 255companies have filed their prospectus for getting listed as of 11th Jan 2018. Out of 255 companies217companies are already listed and have raised Rs.1775.13crores from the market. Total market capitalization of 217listed SME companies as on 11th January, 2018 is Rs.22,125.73cr. Out of 217companies listed on BSE SME platform, 41companies have migrated to BSE main board over a period. BSE is the market leader in this segment with overwhelming market share in excess of 68%.
About Share India Securities Ltd :Share India Securities Ltd, a leading knowledge and technology driven stock broker, is engaged in the business of equity broking, investing and trading activities for the last 24 years. Share India became 200th SME Company to get listed on BSE SME Platform on 5th October 2017. The company in addition to providing the services as a Depository Participant, Research Analyst, Mutual Fund Advisor/Distributor, has also filed an application with Securities and Exchange Board of India for the registration of Company as a Portfolio Manager.
The Company has received many Awards and Recognitions some of them are, an award for appreciation for our contribution in the 1 croresDemat accounts opened by CDSL. Company has been accredited with certificate for being among the top performing members for the year 2015-16 in equity and equity derivatives segment of the National Stock Exchange of India Limited. Company has been accredited with certificate for being among the top performing members for the year 2015-16 in Currency derivative segment of the National Stock Exchange of India Limited.