Six SMEs launch IPOs amidst sluggish economy | SupportBiz

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Six SMEs launch IPOs amidst sluggish economy

 
The unfavourable economic condition has not deterred the small and medium sized businesses (SMBs) to launch their initial public offerings (IPOs); however, bigger companies are struggling with the same, reports PTI.

The most recent IPO launched by a big company was Just Dial, which churned out Rs 900 crore in May, 2013.

In the past one month, six SMBs viz. Money Masters Leasing & Finance Ltd, Alacrity Securities Ltd, GCM Commodity & Derivatives Ltd, Silverpoint Infratech Ltd, VKJ Infradevelopers Ltd and Kushal Tradelink Ltd. have launched IPOs worth Rs 70 crore, in the range of Rs 2 crore to Rs 28 crore, on the BSE’s SME platform. A number of other small companies are also set to follow the same route. Most of the SME IPOs get fully subscribed because of their smaller size and their exclusive availability to informed investors, experts said.

In a bid to raise a total estimated amount of at least Rs 1,700 crore, around eight companies have filed draft documents with the capital market regulator SEBI in the past couple of months for IPOs and follow-on public offers (FPOs), reports PTI.