Mumbai: Tapping strong investor sentiments, as many as 12 small and medium enterprises came out with their IPOs in September — the highest in a single month since the launch of dedicated SME platforms in March 2012.
The SMEs, most of them to be listed on BSE SME platform, had come out with their initial public offering (IPO) to together raise atleast Rs. 81 crore. Top bourses — the BSE and the NSE — had launched dedicated platforms for SMEs in March 2012 to enable the listing of these firms and help them raise equity capital for growth and expansion in a cost—effective manner.
Among the 12 firms that hit the capital markets with their IPOs in September, Momai Apparels topped the chart with Rs. 30 crore initial share sale.
The firm is the only one proposed to be listed on NSE’s platform for SMEs — NSE Emerge, among the 12 companies. The remaining 11 IPOs —— Naysaa Securities, Sirohia & Sons, Encash Entertainment, Ultracab (India), Aryaman Capital Markets, Atishay Infotech, Dhabriya Polywood, Starlit Power Systems, Vibrant Global Capital, Powerhouse Fitness & Realty, and ADCC Infocad —— would trade on the BSE SME segment.
According to market experts, current market conditions are favourable for companies looking to mop up funds through the IPO route. BSE Managing Director and CEO Ashish Kumar Chauhan had recently said that as many 100 companies were expected to be listed on the exchange’s SME platform by the year—end. On the other hand, five firms are listed on the NSE.
According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs. 100 crore in any of the financial years. In addition, the company should have got an investment of at least Rs. 50 lakh by an alternative investment fund, or a venture capital fund, or by a merchant banker, or an angel investor, or a specialised international multilateral agency, or a public financial institution, among other such investors.
The data for September has been gathered through information available on the SEBI’s website.