IPO rush on SME platform; 36 cos line-up plans

Looking to tap into the upbeat investor sentiment, as many as 36 small and medium enterprises have lined up initial public offers (IPOs) to fund business expansion and meet working capital requirements.

The companies, which are planning to list on BSE's SME platform, are expected to float IPOs in the coming months.

The exchange has already given go-ahead to 28 SMEs, while another eight have filed their draft offer documents with BSE and are awaiting for approval, as per the latest information.

This is on top of two SMEs having already garnered funds through the initial share-sale plans this year.

Listing will help these companies to enter capital markets and finally migrate to the main board platform.

Market analysts said that SMEs list themselves on bourse for easy access to capital, enhanced visibility, growth opportunities, exit route for old shareholders, among others.

The companies which have lined up their IPOs include Trine Entertainment, Monarch Apparels (India) Ltd, Shareway Securities, Octaware Technologies, Perry Impex and Western Agro-Tech Innovative.

BSE launched SME platforms in March 2012 and since then, 165 companies have been listed on the platform. Out of these, 24 have migrated to the BSE's main board.

The total amount of money raised so far on the BSE SME platform is a little over Rs 1,288 crore and the market capitalisation of companies listed till date is Rs 18,065 crore.

As per the norm, companies looking to list on the BSE's SME platform require to have post-issue paid up capital of a minimum Rs 3 crore. Besides, they need to have a net worth of at least Rs 3 crore to qualify for the listing. After meeting required norms, SMEs can seek migration to main board.