New Delhi: To tap the upbeat investor sentiments, as many as 23 small and medium enterprises (SMEs) have filed draft papers in the first quarter ending March 31, to raise over Rs 200 crore through their initial public offerings.
The shares will be listed on the SME platforms of the BSE and National Stock Exchange (NSE).
In the first quarter ending March 31 this year, 23 companies filed initial public offer (IPO) papers to mop up Rs 202.10 crore. In comparison, 12 firms filed draft papers in the January-March period of 2015.
Of these 23 companies, 17 firms have filed papers to launch IPOs on BSE's SME platform, while the remaining six plan to list on NSE Emerge.
Proceeds of the issue will be used towards business expansion plans, working capital requirements and for other general corporate purposes.
The proposed average IPO size on BSE's SME Exchange is Rs 9.27 crore, while that for NSE's Emerge is Rs 7.43 crore.
"SME listing is not a business development initiative, rather market development initiative," Pantomath Group Managing Director Mahavir Lunawat said.
Moreover, eight SME companies have already got listed on the exchanges during the period under review. These firms together mobilised around Rs 48 crore.
Among the firms listed, Vidli Restaurants was subscribed by about seven times, which is the highest ever subscription in any SME IPO so far.
In addition, public issues of Ruby Cables, Nintec Systems and Franklin Leasing and Finance are currently underway, while Raghav Ramming Mass, Sysco Industries and Lancer Container Lines will launch their initial share-sale programmes tomorrow.
In March 2012, BSE and NSE had launched their SME platforms to provide opportunity to entrepreneurs to raise equity capital for growth and expansion.