Mr. Ajay Thakur, Head of BSE’s SME Exchange, said at a seminar organized in the city by Council for Small & Medium Enterprises (Councilsme) that the newly established SME exchange, in a short time has succeeded in creating wealth for its investors and today it commands a 91% market share. BSE SME has got 41 companies listed and another 11 are in pipeline. The total market capitalization of the 41 listed companies stood at over Rs. 3000 crores, he added. BSE SME Exchange is the first stock exchange in the country to launch an exclusive BSE SME platform. Over 90% of the listed companies are trading above their issue price. BSE has launched SME IPO Index on 14th December, 2012 with 100 as base which is today quoting at 450 thereby giving a lot of appreciation to the value of the companies listed on BSE SME Exchange.
Earlier in his welcome address, Mr. Vinod Madhok, Chairman, Councilsme congratulated the BSE in taking the initiative to create a separate platform for the SMEs to raise money from the public. Under-capitalised and debt ridden SMEs by raising money from the public would not only be able to reduce costs but source funds for their various needs like working capital, retire high cost debt, expansion, technology upgradation, he added. He further said that, by going public, SMEs would be able to access secondary equity funding, including private placement and strengthen their balance sheets.
Mr. Deepak Sharma, Managing Director, Sharthi Capital, Merchant Banker, explained the regulatory listing requirement in much detail.
Mr. K. Raghuraman, Vice-Chairman of Councilsme and Advisor to BSE said that raising funds from the public would be much easier than from banks and financial institutions. He also mentioned that the SME Exchange is expecting to list a dozen more companies in the near future and added that Councilsme will assist in creating awareness of the SME Exchange amongst SMEs.
The seminar was very well attended. Professionals from Councilsme, BSE and Merchant bankers responded to queries raised by the participants on the procedural and administration issues relating to raising of capital and listing in the BSE/SME Exchange.