An increasing number of small and medium enterprises (SMEs) from Tamil Nadu are lining up for listing on BSE’s SME platform now when compared with the past.
This has been driven by the memorandum of understanding signed between BSE and the MSME Trade and Investment Promotion Bureau, Government of Tamil Nadu to raise awareness about listing, and a high subsidy extended by the State government for SMEs to cover their listing expenses.
Though Tamil Nadu has third highest number of SMEs in India, the State has been trailing behind several States like Maharashtra, Gujarat, Uttar Pradesh, Rajasthan and West Bengal, among others in SME listing on the BSE platform.
There are over 130 SMEs from Maharashtra and more than 125 SMEs from Gujarat got listed so far on the BSE SME Platform. However, there are only 9 companies from Tamil Nadu listed on the platform so far.
“But there has been good traction from MSMEs in Tamil Nadu and we are on the verge of signing up with 15-20 SMEs for listing on the platform. We expect at least a total of 10-15 more SMEs from Tamil Nadu to come forward for listing in the next 6-9 months. This is mainly due to our continuous push through various programmes in the State and also an attractive subsidy provided by the state government,” Anand Chari, Deputy General Manager, BSE SME Exchange Platform, said while addressing a meeting on ‘Empowering MSMEs on Capital Market Exposure’, organised by Andhra Chamber of Commerce.
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“The State government reimburses 75 per cent of the expenditure incurred for listing, up to a maximum of ₹30 lakh towards assistance for listing and raising money in the SME stock exchanges, said S Sakthivel, Joint Director/ General Manager, Fa Me Tamil Nadu.
During 2022-23, a sum of ₹.67 lakh have been disbursed to three SMEs for listing on the platform.
“Initially, a lot of companies in northern India have come onboard on SME Platform and a lot of wealth has been created for investors. As a result, scores of institutional investors are showing interest in these SMEs and this is the time SMEs in South India, in particular Tamil Nadu, also catch up on the listing,” said Rajat Baid, Founding Partner, Srujan Alpha Capital Advisors.
About 10 SMEs from Tamil Nadu that are getting ready for listing on the SME Platform are expected to raise equity in the range between ₹5 crore and ₹70 crore, he added.
Overall, there are 433 companies listed on the SME platform to date with a market cap of ₹65,062 crore (as on April 21, 2023). These companies have raised a total sum of ₹4,950 crore.
“Among other schemes, the Tami Nadu government’s 75 per cent subsidy for fundraising from the capital market has come as a big boon for SMEs in the state and this will lead to more and more companies in the State going for SME listing platform to raise capital,” said MK Anand, Chairman, MSME & ICT Panel, Andhra Chamber of Commerce.