Tag: SME

BSE SME platform receives 214 draft prospectus

BSE SME platform receives 214 draft prospectus

20/06/2017 12:06

BSE’s small and medium enterprise (SME) platform seems to be generating significant interest from investors with as many as 214 firms filing draft papers to raise funds through IPOs since the launch of the segment, nearly five years ago.

Out of 214 companies, 183 of them are already listed and have raised Rs 1,440 crore from the market. Currently, these firms have a market capitalisation of Rs 18,832 crore.

Of these 183 firms listed on BSE SME platform, 29 have migrated to BSE main board. Asia’s oldest bourse is the leader in this segment with more that 80 per cent market share.

Moreover, a total of 26 SMEs are expected to launch their initial public offerings soon.

BSE had launched its SME platform in March 2012 and since then, several companies have got listed on them and some have even shifted to the main board.

The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also provides immense opportunity for investors to identify and invest in good SMEs at an early stage.

“BSE’s SME has become the first SME platform in India where 214 companies have filed their prospectus for getting listed,” the exchange said in a statement issued today.

Indian SME sector has emerged as a highly vibrant and dynamic sector of the economy over the past few years. SMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialisation of rural areas.

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FDI in India up 29 pct after ‘Make in India’ launch: Min

FDI in India up 29 pct after ‘Make in India’ launch: Min

17/03/2016 10:15

The Indian Government has said that Foreign Direct Investment in the country has increased by 29 per cent for the 15-month period ended December last year after the launch of ‘Make in India’ initiative.

As per reports, the initiative aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation.

Commenting on the issue, Commerce and Industry Minister Nirmala Sitharaman told the media, “FDI inflow has increased 29 per cent during October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of this initiative.”

“During April-January 2016, the government has received 424 FDI proposals. Out these, 285 proposals have been disposed of,” he added.

The Minister further added that foreign investment in business to customer (B2C) e-commerce activities had been “opened in a calibrated manner” and entity was permitted to undertake retail trading through e-commerce under certain circumstances.

NSE forms panel to expedite IPO process

29/02/2016 14:40

Facing intense investor pressure to go public, National Stock Exchange (NSE) said it has formed a committee to expedite the listing process and seeks support for “self-listing agenda”.

The listing committee, comprising NSE board members, representative shareholders and the management, will hold consultations with stakeholders and proceed on restructuring exercise simultaneously with self-listing agenda.

While BSE has said it has no problem with cross-listing and has already approached Sebi seeking approval to launch IPO and get listed, NSE is opposed to the idea of cross-listing and wants to list shares only on its own platform saying it can not be subjected to regulation by a rival.

A stock exchange typically functions as a front-line regulator for all the companies listed on its platform in terms of disclosure requirements including of key information.

“The NSE board has formed a listing committee to accelerate the listing process and assist the Managing Director and Chief Executive in this,” the nation’s largest bourse said in a statement, adding the formation of the panel was decided at the last board meeting.

The board has authorised MD and CEO Chitra Ramkrishna to induct panel members apart from shareholder representatives who are currently not represented on the board, it said.

“We are committed to take the listing of the bourse to the exchange platform. Understanding of critical issues and a constructive dialogue is important to reach this milestone in stipulated timelines,” Ramkrishna said.

The panel will take assurances from stakeholders to support its principled stand that an exchange should continue to be regulated by an regulator only and not by competitors.

The committee will also have common nominees to advice on legal, regulatory, government matters and also for getting feedback from shareholders.

The NSE is pitching hard for self-listing but capital markets regulator Sebi is firm that only cross-listing of stock could be allowed. But the exchange argues that globally many exchanges globally are self-listed.

The bourse is under intense pressure from various investors, including those from abroad, to expedite listing, while several shareholders have also approached the Sebi and other authorities in this regard.

Besides, various investors have opposed the NSE’s business restructuring plan, saying the move would delay the listing and result in loss in shareholders’ value. Under the proposed rejig, NSE plans to create a separate entity for non-regulated business.

Welcoming the move, Sohil Chand, Managing Director of Norwest Venture Partners India, which holds a stake in NSE, said the listing committee formation is directly in response to shareholders’ demand to expedite the process.

“We wanted the listing to be done in a time-bound manner. This (committee) should help in completing listing in the shortest time period possible,” he told PTI.

“The selling shareholders wanted a forum for coordination on listing,” Chand said, adding the NSE has assured investors the restructuring process would not cause any delay in the listing process.

Seven SMEs file DRHP in 2016 to float IPOs

16/02/2016 13:12

Seven small and medium enterprises (SMEs) have filed draft papers to float their initial public offerings this year.

The shares will be listed on the SME platforms of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), said the media reports.

Since the beginning of 2016, seven companies have filed draft documents to collectively mop up about Rs 34 crore through their IPOs, according to a PTI report.

Four firms – Sysco Industries, Kranti Industries, Raghav Ramming Mass and AGI Hospitalities – filed papers to launch their IPOs on BSE’s SME platform, while Globe International Carriers, HEC Infra Projects and Artemis Electricals plan to list on NSE Emerge.

These companies are from sectors such as logistics services, automotive components, infrastructure and hospitality, among others.

According to market experts, increasing number of firms coming on SME exchanges send positive signals and lend a lot of confidence to SME capital markets.

In 2015, 43 companies were listed to garner about Rs 327 crore from SME platforms.