Credit and Finance for MSMEs: The state of Uttar Pradesh is seeing an upsurge of listings from the MSME sector. Almost 20 MSMEs from the state with a combined market cap of Rs 230 crores got listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) last year.
According to the report in Business Standard, Navneet Sehgal, Additional Chief Secretary (MSME & export promotion), Uttar Pradesh said 12 companies got listed on the BSE and eight companies on the NSE.
The reason for the increase in the number of SME listings is two fold: MSMEs themselves have understood the benefits of raising money from the capital markets to scale up their operations and be competitive globally. Also, Uttar Pradesh too is working to ease the IPO process for the sector.
“The MSME department is planning to create awareness among the state MSMEs about the process and benefits of listing on the stock exchanges by holding workshops and knowledge sessions across the state,” Sehgal said.
As per the data from the MSME Ministry’s annual report of 2020-21, Uttar Pradesh has the largest MSME base in the country with 90 lakh MSMEs, accounting for a 14 per cent share of India’s total number of MSMEs.
The state has recognised critical sectors such as logistics, food processing, manufacturing, IT, plastics, leather, textile etc, and will give preference to the MSMEs incorporated in the last five years to get listed on the stock exchange, said the report.
Chief Minister Yogi Adityanath has earlier said that UP is working on the road map to become a one trillion dollar economy. In addition to that, the state government is aiming to bring in Rs 10 trillion in investments from domestic and international companies at the proposed UP Global Investor Summit to be held in January 2023.
The state has also undertaken the One District One Product scheme (ODOP) to promote balanced regional development by promoting artisanal products and transforming the state’s districts into export hubs under the Atmanirbhar Bharat vision.