The number of listed firms on the BSE’s Small and Medium Enterprise (SME) platform is set to hit the 100 mark with at least six companies lined up to list their shares this month.
At present, 94 companies are listed on the SME platform of BSE. These firms raised about Rs.730 crore through initial public offerings (IPOs).
Moreover, one more company, P B Films, has filed its draft offer documents with the exchange and is waiting approval, which will take the total number to 101. Many more firms are expected to follow the suit.
Four companies — Jiya Eco Products, M D Inducto Cast, Majestic Research Services and Solutions and VMV Holidays — which completed their respective public offers last week, will list its shares on the SME segment in July.
In addition, IPOs of — Gala Print City and Loyal Equipments — currently underway, are scheduled to complete on July 6 and July 7, respectively.
These six companies will have to get on BSE SME segment within 12 days of the IPO closure as per the regulation.
In March 2012, BSE has launched the platforms for SME segment, the NSE followed suit in September in the same year when its platform ‘Emerge’ went live.
BSE, earlier this year, 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.