1. SMEs lineup IPO plans

SMEs lineup IPO plans

As many as 33 small and medium enterprises are planning to line up initial public offers (IPOs) to fund business expansion and meet working capital requirements.

By: | Published: June 17, 2016 4:12 PM
IPOs IPOs include, Trine Entertainment, Monarch Apparels (India) Ltd, Shareway Securities, Octaware Technologies, Worth Infra Industries, AGI Hospitalities, Yash Chemex and Advance Syntex. (Reuters)

As many as 33 small and medium enterprises are planning to line up initial public offers (IPOs) to fund business expansion and meet working capital requirements.

These companies, which are planning to list on BSE’s SME platform, are expected to float IPOs in the coming months.
The exchange has already given go-ahead to 15 SMEs, while another 18 have filed their draft offer documents with BSE and are awaiting for approval, as per the latest information.

Listing will help these companies to enter capital markets and finally migrate to the main board platform.
SMEs, which have lined up their IPOs include, Trine Entertainment, Monarch Apparels (India) Ltd, Shareway Securities, Octaware Technologies, Worth Infra Industries, AGI Hospitalities, Yash Chemex and Advance Syntex.

BSE MD and CEO Ashishkumar Chauhan, last month, had said that exchange expects 30 IPOs on its SME platform in the next three months.
BSE launched SME platforms in March 2012 and since then, 139 companies have been listed on the platform. These firms together have a market capitalisation of Rs 10,126.35 crore.

Out of these 33 firms, 18 companies have migrated to the mainboard platform. Currently, there are 121 companies listed on the SME platform.
As per the norm, companies looking to list on the BSE’s SME platform require have post-issue paid up capital of a minimum Rs 3 crore.
Besides, they need to have a net worth of at least Rs 3 crore (as per the latest audited financial results) to qualify for the listing.

SMEs list themselves on bourse for easy access to capital, enhanced visibility, growth opportunities, exit route for old shareholders, among others.
After meeting required norms, SMEs can seek migration from SME Exchange to main board.

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