New Delhi: As many as 18 small and medium enterprises have lined up their initial public offers (IPOs) to fund business expansion and meet working capital requirements.
These companies, which are planning to list on BSE's SME platform, are expected to float IPOs in the coming months.
BSE has already given go-ahead to 12 SMEs, while another six have filed their draft offer documents with the exchange and are awaiting its approval, the bourse said in a statement.
According to market experts, current market conditions are favourable for companies looking to garner funds through the IPO route.
SMEs which have lined up their public offers include Trine Entertainment, O P Chains, Shareway Securities, SSPN Finance, Yogya Enterprises, Mahabir Metallex, Franklin Leasing and Finance, Funny Software, AGI Infra and Jiya Eco-Products.
Currently, 86 companies are listed on the BSE's SME platform and raked in Rs 679.30 crore. The market capitalisation of these companies stands at over 7,000 crore.
In comparison, six companies are listed on the SME platform of NSE.
Last month, BSE had announced tightening of financial eligibility norms for listing of SMEs to attract "robust" companies to the stock market.
Under the new norms, which take effect from April 1, companies looking to list on the BSE SME platform would be required to have post-issue paid up capital of a minimum Rs 3 crore as against the current requirement of Rs 1 crore.
Besides, they would need to have a networth of at least Rs 3 crore (as per the latest audited financial results) to qualify for listing on the segment. So far, the firms were mandated to have a networth of Rs 1 crore.
SMEs list themselves on bourses for easy access to capital, enhanced visibility, growth opportunities, exit route for old shareholders, among others.
After meeting required norms, SMEs can seek migration from SME Exchange to Main Board.
