7 reasons for small businesses to list on stock exchanges

Image source: Bloomberg Jun 05, 2024 Mohammed Ramees

Healthier alternative to bank credit, informal loans for accessing capital through equity infusion

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Lends greater credibility to the performance of the business that may lead to higher demand in its shares and company valuation

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Helps businesses mitigate risks with efficient flow of capital to activities with higher payoffs

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Opens opportunities for possible mergers and acquisitions and overall expansion of the business

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Helps in retaining talent in the company through employee stock options

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Enables liquidity for shareholders which further helps in trust building among investors

Helps venture capital funds to seek an exit from the company

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In 2023, 182 SMEs raised Rs 4,686 crore through SME platforms. Till April 30 this year, 73 SMEs were listed on BSE SME and NSE Emerge raising Rs 2,323 crore, as per PRIME Database.

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