Ajay Thakur, Head of BSE-SME platform speaks to the entrepreneurs on IPO listing
Mumbai: A&A Business Consulting, a leading name in management consulting for SMEs organized an awareness session on SME index and financing options for small and medium enterprises(SMEs) on Thursday evening. At the opening of the program, Amit Kumar, Partner at A& A Business Consulting, addressed the gathering and shared that the main objective of the session was to make businessman aware of various ways for fund raising with special emphasis on the functioning of BSE-SME index. Kumar urged the small and medium enterprise owners to understand and prepare themselves to take benefit of the various financing options available.
Ajay Thakur, Head of BSE-SME Exchange, made the businessmen present, aware of the services of the BSE-SME Exchange. Thakur also said that during demonetization and GST application, the small and medium enterprises faced various problems; but that the businessmen were intelligent enough to cope up with the changes.
In the next three months, 21 companies from the micro, small and medium enterprises (MSME) sector are poised to be listed on the BSE’s small and medium enterprises (SME) platform. Of these, West Bengal’s MSMEs would account for nearly half the listings on the exchange. Ajay Thakur, said that such companies from certain states like Bengal have traditionally relied on bank loans, borrowings from individual lenders and own capital to fund growth or meet their working capital needs.
“This is changing now. Out of the 259 companies which are listed on the SME platform, 18 are from this state. Interestingly, two of the largest IPOs on the platform came from firms in West Bengal. They are now realizing that the IPO route is a better option than private borrowings or funding from banks”, Thakur said. The forthcoming consolidated IPO size of these 10 firms from Bengal is expected to be between Rs.1.5 billion and Rs.2 billion.
In the recent past, the BSE conducted numerous seminars on the benefits of listing and also roped in merchant bankers who directly interacted with the SMEs to make them understand how they stand to gain once listed.
“The benefits of listing range from raising funds to maintaining proper debt-equity ratio to improve balance sheet, among others,” Thakur said.
Listing also helps such small companies gain investor confidence faster owing to more transparent filing norms governed by various statutory authorities and market regulators. Also, such companies can retain talent better by offering employee stock ownership plan