Small, medium companies raise Rs113 crore through IPOs in April-July

As many as 14 small and medium enterprises (SMEs) got listed on capital markets with public issues worth Rs 113 crore in the first four months of the current fiscal.

In comparison, nine SMEs had launched their initial public offerings (IPO) and raised a total of Rs 90 crore during the April-July period of the previous fiscal.

According to the data available with Sebi, five SMEs came out with public issues in July, raising a total of Rs 44 crore, while eight SMEs hit the capital markets in June to mop-up Rs 39 crore.

Further, one SME had hit the capital markets with an IPO worth Rs 5 crore in May, while no issue was launched in April.

These companies are from sectors like trading, steel, manufacturing, textile and finance and are spread across the country, according to a report by Knowledge and News Network, a media platform that focuses on micro and SMEs.

BSE and the National Stock Exchange (NSE) had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country.

BSE (formerly known as Bombay Stock Exchange) has about 104 companies listed on its SME platform, with a total market capitalisation of over Rs 7,700 crore. This platform has helped the listed SMEs to raise nearly Rs 756 crore.

The stock exchange is expecting about 100 IPO issues on its SME segment during the current fiscal.

The NSE has 18 firms trading on its SME platform. The platforms provide 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.