The small and medium enterprises (SMEs) have raised Rs 1,281 crore through initial share-sales in the months of April-September of the current fiscal registering a nearly doubling from the year-ago period.
According to offer documents, the funds raised through IPOs were meant for business expansion plans, working capital requirements and other general corporate purposes.
As per the data provided by merchant bankers, a total of 74 companies got listed with initial public offers (IPOs) worth Rs 1,281 crore in the first six months of the ongoing fiscal year, compared to the 58 firms which tapped the IPO route to garner Rs 656 crore in the same period last financial year.
In fact, these companies are listed on the SME platforms of BSE and NSE.
The Managing Director of Pantomath Group Mr. Mahavir Lunawat said, “with companies listed on SME platform becoming more established, investor base is also getting broadened. Moreover with increasing number of SME stocks and greater returns thereon, more and more investors are getting attracted for SME investing.”
As per sources, the companies which got registered, during the period under review, were from the sectors such as manufacturing, textiles, engineering, agriculture, chemicals, food processing, media and entertainment, construction and finance and investments.
It has been more than six years since the SME market opened up. The market has been growing gradually with varying trends such as high over-subscriptions, widening shareholder base, venture capital exits through this platform and anchor investor participation.
The SME platforms was launched in March 2012 by BSE and NSE. Since then, over 450 companies have got registered on them raising more than Rs 5,400 crore. In fact, some of the SMEs have even shifted to the main-board.
The not only provides platform and opportunities to SME entrepreneurs to raise equity capital for growth and expansion but also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.