The National Stock Exchange (NSE) has partnered with the West Bengal government to spread awareness amongst MSMEs (Micro, Small and Medium Enterprises) in the state regarding fundraising through IPO mechanism using the bourse’s SME platform.
The partnership will involve conducting awareness drives through seminars, MSME camps, knowledge sessions, road shows, and workshops to guide corporates across the state for fundraising on its SME platform, Emerge.
The NSE Emerge platform has helped SMEs raise capital in an efficient manner and increased their visibility through the listing on the stock exchange.
The platform has 396 companies from various sectors listed and total funds raised on the platform till date is over Rs 7,800 crore. The market capitalisation of these companies has crossed Rs 94,000 crore.
The platform has 16 companies listed from West Bengal on the platform with collective fund mobilisation of over Rs 224 crore.
Advantages to SMEs of listing on the NSE Emerge platform | |
Table of contents [Show] Access to Capital | One of the most significant advantages for SMEs is the ability to raise capital through an IPO on the NSE Emerge platform. Traditionally, SMEs have faced challenges in accessing funding from traditional sources such as banks. Listing on the Emerge platform provides SMEs with an alternative avenue to raise capital from a pool of institutional and retail investors. |
Increased Visibility | Listing on the NSE Emerge platform significantly enhances an SME's visibility to a broader investor base. The platform connects SMEs with a wider range of potential investors, including institutional investors, mutual funds, and high-net-worth individuals. This increased visibility can lead to increased investment opportunities and a stronger financial position for the SME. |
Improved Corporate Governance | The process of listing on the NSE Emerge platform requires SMEs to adhere to stringent corporate governance standards. These standards promote transparency, accountability, and ethical business practices. By complying with these standards, SMEs can instill confidence in investors and enhance their overall reputation. |
Enhanced Brand Image | Listing on the NSE Emerge platform serves as a testament to an SME's financial stability, growth potential, and commitment to transparency. This association with a reputable stock exchange enhances the SME's brand image and credibility among investors, customers, and partners. |
Exit Opportunity | Listing on the NSE Emerge platform provides SMEs with an exit opportunity through the secondary market. Once listed, SMEs can offer their shares to the public, allowing existing shareholders to sell their stakes and realize their investment returns. This exit strategy can be particularly beneficial for founders and early investors who seek to monetize their investments. |
