Gujarat seems to be the biggest beneficiary of SME fund raising platforms in India. Leveraging on its large industrial clusters dominated by small and medium companies, the state has churned out the maximum number of SME IPOs and mopped up the largest amount of funds through such initial public offerings (IPOs) in last six financial years.
According to data compiled by Pantomath Advisory Services Group, Gujarat has topped the list with 113 listings out of total 377 SME IPOs that hit the market across the country in the past six fiscals. The state also accounted for the largest pie of the total Rs 4,226 crore raised via SME IPOs during the period. Gujarat-based smaller firms have so far cumulatively collected Rs 1,301crore.
Gujarat is followed by Maharashtra with 107 SME IPOs raising Rs 1,195 crore. Delhi and West Bengal come at a distant third and fourth positions by churning out 30 (Rs 260 crore raised) and 23 (Rs 257 crore) offers, respectively. At present, two SME platforms are operated by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The first such SME exchange was launched by BSE in 2012. “Gujarat has robust business ecosystem comprising large industrial clusters in Jamnagar, Morbi, Bhavnagar and Rajkot among others,” said Mahavir Lunawat, group MD, Pantomath Capital Advisors, which has lead managed several SME IPOs to TOI.
Gujarat has robust business ecosystem comprising large industrial clusters in Jamnagar, Morbi, Bhavnagar and Rajkot among others. Smaller firms from these clusters have been actively raising funds through these SME platforms, believe experts.
Reportedly, 2017-18 was the best ever for fund raising by small firms and, Gujarat ended the year with maximum 51 IPOs raising Rs 663 crore. A total Rs 2,155 crore were collected via 148 SME IPOs across the country, the report said.