Credit and finance for MSMEs: Gujarat-based pharma company Dipna Pharmachem Limited is the 389th company to get listed on the BSE SME platform. The latest MSME to list on the small business platform, Dipna Pharmachem launched its initial public offering of 40,02,000 equity shares of Rs 10 each for cash at a price of Rs 38 per equity share, aggregating to Rs 15.21 crore, BSE said in a statement. The company successfully completed its public issue on August 30, 2022.
Dipna Pharmachem is into trading and distribution of various pharmaceutical raw materials, also called active pharmaceutical ingredients (APIs), excipient and chemical formulation products. The company’s portfolio of products includes 61 AIPs and AIPs intermediates such as Cephalosporins, Cardiovascular, Anti-Bacteria, Quinolones, Veterinary, Anti-Virus, Anti-Inflammatory, Neuropsychiatry, Steroid Hormone, other etc., the statement added. The lead manager of Dipna Pharmachem was Interactive Financial Services Limited.
As of September 11, 2022, 151 companies have migrated to the main board so far. In terms of 389 companies listed including Dipna Pharmachem on the BSE SME platform, the total amount raised by them from the market stood at Rs 4,216 crore while the total market capitalization of these companies was Rs 59,699 crore. On the other hand, 32 companies have been suspended so far from the exchange. “BSE is the market leader in this segment with a market share of 61 per cent,” said BSE.
Capital markets regulator Securities and Exchange Board of India (SEBI) had come out with guidelines in May 2010 for launching BSE’s SME exchange. BSE was the first stock exchange to get approval from SEBI and launch its SME platform in March 2012. According to BSE, the response since the launch of this platform by BSE has been very positive.
Meanwhile, a working paper by the Reserve Bank of India (RBI) in August this year noted that SME exchanges BSE SME and NSE Emerge have lower liquidity as reflected in a lower quick ratio, current ratio and cash to current liabilities even as they have better profitability ratios, higher return on assets and asset utilisation ratios and also debt-equity ratio in comparison to the smallest 25 per cent of firms listed on mainboards.
The paper had said that the lack of aftermarket liquidity remains a problem in SME exchanges with the turnover ratios declining significantly even within the first 60 trading days after listing, indicating paltry trading in the SME exchanges in India.