1000 SMEs to hit IPO market in next 2 years: Report

Looking at the performance of IPO market in India, a Guiness Corporate Advisory Services report expects 1000 SME IPOs to hit the market in the next two years.
 
In last couple of years, both benchmark indices, Sensex and Nifty, have listed more than 300 SMEs and this number is going to shoot up further, as per the report.
 
Kamal Kothari, MD, said that “SME IPOs are the future for merchant bankers. We are having lots of work on hand to deliver. Besides we are operating in retail broking, institutional broking and portfolio management. We are very happy that we have got good response from our state.”
 
Guiness Corporate Advisory Services has successfully completed 45 SME IPOs and is currently working with 50 more IPOs from the sectors like Pharma, Infrastructure and other emerging sectors. The company working on more than 50 mandates is confident of closing 100 IPOs in the next one year. 
 
After conducting an education session for corporates in West Bengal, the advisory firm noted that about 50 leading SMEs from the state have participated in the meet.
 
Ajay Thakur, BSE SME Head, said that ‘SMEs have really got benefited from this platform, we are encouraging more SMEs to come out with IPO. This would remain a great source of funds. Many listed SMEs have also moved to main Exchanges because of their growth in the last couple of years.
 
"This is also a good gateway for eventually get listed on the main platform of the stock exchanges. I am very happy to see 50 SMEs attending this programme and their interest in our BSE SME platform,” Thakur added.
 
According to Guiness, SMEs are coming from almost all the sectors operating in the country.
 
Major sectors, which have been very active in using this platform, are capital goods and allied sectors, infrastructure, wellness, jewellery, steel, consumer durables and new generation companies to have adopted this route to raise funds for their expansion plans, the advisory firm said.
 
Guiness further said, "SME has been a big breather for the stock markets to bring new ideas at reasonable valuations. This has really helped retail, HNIs and institutional investors to invest wisely in SME IPOs in the recent past."
 
Many SME IPOs have been subscribed 3 times to 300 times in the recent past without an exception.
 
At the current valuations of the main bourses, Guiness said the need for new ideas at good valuations is the requirement for the current market conditions.
 
"Many of the learned investors have earned good returns from the SMEO IPO listings in the recent past," it added.