Since the launch of BSE SME Exchange on 13th March 2012, a total number of 359 small and medium enterprises (SMEs) have been listed so far at the exchange, raising funds to the tune of around ₹3,800 crore. Their net market capital today is around ₹52,000 crore. This means, the Return on Equity (RoE) by the BSE SME Exchange in one decade has been around 14, which is huge because an investor has got ₹14 on one’s Re 1 investment in these 10 years.
BSE Ltd set up the BSE SME Platform to enable the listing of SMEs from the unorganized sector scattered throughout India, into a regulated and organized sector.
On nearing 10 years of BSE SME Exchange, Ajay Thakur, Head at BSE SME in a conversation with Livemint said, “In this one decade time, 359 BSE SMEs have raised around ₹3,800 crore. The average RoE at the BSE SME Exchange is around14. This could become possible because of the emergence of new set of merchant bankers who are ready to aid small ticket sized companies with their network. Apart from this, in the last one decade, BSE SME Exchange has been able to attract small and micro ace investors who are ready to invest in a small company and wait for two to three years after listing.”
The exchange has become a relevant platform for the SMEs to raise fund through Initial Public Offering (IPO), helping good number of merchant bankers and small ticket sized ace investors.
After the launch of BSE SME Exchange, a good number of MSMEx cohorts have emerged. “These MSMEx cohorts motivate quality SMEs to go for listing and raise fund through IPOs. Since ticket size of these SME IPOs are very small, targeting ace investors like Rakesh Jhunjhunwala, Dolly Khanna, Vijay Kedia, Ashish Kacholia, etc. is not viable,” said said Amit Kumar, CEO & Co-founder at MSMEx.
But, Kumar added that there is huge number of micro ace investors, who got attracted to these BSE SME listed companies. “Their ₹1 crore to ₹5 crore investments in SME stocks have helped the listed SME to grow at a faster rate delivering stellar returns to its shareholders. This is getting reflected in the number of SME stocks entering in the list multibagger stocks in 2021 in India.”
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