As per information from the sources, around 100 companies are getting list this year on BSE SME Platform. These companies are from diversified sector like logistics services, media, automotive components, pharma, infrastructure and hospitality, among others. In the last year too, around 55 companies have raised money from the market via IPO route at BSE SME Platform.

The BSE SME platform was launched in the year 2012 to help Small and Medium Enterprise to raise money for their business expansion that eventually leads to a growth of the economy of the country.

The benefits of the listing on BSE-SME  Platforms are explained below:

1.Easy access to Capital         

  • BSE SME provides an avenue to raise capital through equity infusion for growth-oriented SME’s.

2.Enhance Visibility and Prestige 

  • The SME’s benefit by greater credibility and enhanced financial status leading to demand for the company’s shares and higher valuation of the company.

3.Encourages Growth of SMEs

  • Equity financing provides growth opportunities for expansion, mergers, and acquisitions thus being a cost-effective and tax-efficient mode.

4.Enables Liquidity for Shareholders

  • Equity financing enables liquidity for shareholders, provides growth opportunities for expansion, mergers, and acquisitions, thus being a cost-effective and tax-efficient mode.

5.Equity Financing Through Venture Capital

  • Provides an incentive for Venture Capital Funds by creating an Exit Route and thus reducing their lock-in period.

6.Efficient Risk Distribution

Capital Markets ensure that the capital flows to its best uses and that riskier activities with higher payoffs are funded.

7.Employee Incentives

  • Employee Stock Options ensures stronger employee commitment, participation, and recruitment incentive.

Such large numbers of companies listing in BSE SME platform is a good for the investor as it will give good opportunity to invest in diversified sectors of the economy.

Please stay tuned to https://investorzone.in/ for detailed analysis of these upcoming IPOs with the free recommendation: whether to Apply or Avoid?




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