BSE SME Exchange has produced many micro Rakesh Jhunjhunwalas
Since the launch of BSE SME Exchange on March 13, 2012, a total 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. In a decade, the gross level estimated return by the SME Exchange has been around 3.4, which means that an investor has got return of ₹3.4 on one’s Re 1 investment in these 10 years. In fact, majority of the SMEs got listed at the BSE SME Exchange in last 5 years, so the actual return would come much higher if the return is seen through this angle.
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 gross level estimated return is around 3.4, which 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, the 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,” highlighted Amit Kumar, CEO & Co-founder at MSMEx.
But, Kumar said 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.”
So, one can say that BSE SME Exchange has produced new set of merchant bankers and a huge number of micro ace investors such as Rakesh Jhunjhunwala, Dolly Khanna, Vijay Kedia, Ashish Kacholia, he added.
Source: livemint
