BSE aims to facilitate wealth creation for SMEs: CEO
At present, 32 SMEs, listed on BSE SME Platform, are part of the Index.
Vadodara: Small and medium scale companies should get listed on the BSE SME platform so as to avail of various benefits, a top Bombay Stock Exchange official said on Saturday.
"BSE was the first stock exchange in the country to launch the special BSE SME platform last year. Any company whose post-issue face value capital is less than Rs 250 million is eligible to get listed on the SME platform, subject to fulfilment of other applicable provisions," said Bombay Stock Exchange MD & CEO Ashishkumar Chauhan.
He said the exchange has 32 listed companies on the BSE SME Platform and 70 companies are waiting to be listed on the bourse.
The CMD was addressing the 94th AGM of Federation of Gujarat Industries at Sevasi near here last night.
He said the Index aims to track primary market conditions in the Indian capital market and measure growth in investors' investments in SME equities, over a period of time.
"BSE SME Platform has made available effective source of raising equity capital for growth of SMEs," Chauhan said, adding that the BSE SME IPO Index will continue to guide them and various intermediaries in the capital market as well as investors in this respect. "Any company whose IPO is listed on the BSE SME platform shall be considered eligible for inclusion in the Index," he added.
The Index will have a minimum of 10 stocks in the Index at any given point in time. At present, 32 SMEs, listed on BSE SME Platform, are part of the Index.
He said the Index has given 30.77% returns (absolute) between 16th August 2012 to 13th December, 2012. "BSE SME IPO Index enables investors to track performance of the SME listed on BSE SME Platform", Chauhan added.
"The MSME sector contributes to around 40% of India's exports and employs about 80 million people. The small companies coming under this sector face several difficulties in their quest for growth," the CMD said.
"Prime Minister Manmohan Singh had constituted a task force which recommended setting up of a dedicated stock exchange/ platform for SME. With the launching of BSE SME IPO Index about a year ago, we have gone one step further to facilitate investor capital and create wealth for all the stakeholders," Chauhan said.
He added: "Our vision is wealth creation for SMEs through inclusive growth and provide international platform for SMEs and investors so that they can come together and raise equity capital".
"BSE SME platform provides a great opportunity to entrepreneurs to raise equity capital for expansion of SMEs. The platform also provides an immense opportunity for investors to identify and invest in good SME companies at an early stage," said Chauhan, citing example of Infosys whose initial IPO had opened at Rs 70 during the foundation period.