The Small and medium enterprise (SME) platform of BSE, which was launched in 2012, has generated significant interest amongst the investors. This is evident from the fact that as many as 214 companies have filed draft papers to raise funds through IPO. Out of these 214 firms, 183 are already listed and have already succeeded in raising Rs. 1,440 Crore from the market, besides
which the cumulative market capitalization of these firms stands at 18,832 Crore. More importantly, 29 of these 183 firms have already migrated to the main board of BSE while 26 SME’s are expected to launch their IPO’s in the near future. Not surprisingly, this market segment is led by Asia’s oldest bourse, which holds more than 80% of total market share.
The SME platform provides an opportunity for the entrepreneurs in the field to raise equity capital for enhancing the growth and expansion of their ventures. In addition, it enables the investors to not only identify good SME’s but also provides them with a great opportunity to invest in them at an early stage. Over the past several years, the SME sector in India has emerged as an extremely vibrant and dynamic economic sector. They have come to play a vital role in providing multiple employment opportunities with a relatively lower capital cost as compared to the large industries. More significantly, they have helped in spreading the wave of industrialization into the rural areas of the country thus ensuring its overall growth and development.
No doubt in the fact that The SME sector of India has actually in reality emerged as one of the highly vibrant as well as dynamic sector of global economy in last few years time. Now it's time to wait and watch what more we get to see in the coming time from BSE SME platform.