The Federation of Telangana Chambers of Commerce & Industry (FTCCI) in partnership with the National Stock Exchange of India Limited (NSE) & Hem Securities has organised a Seminar on “Evolution of SME IPOs: Augmenting growth of MSMEs” for the SMEs at FTCCI on Saturday evening at FTCCI in Red Hills, in order to take initiative in alignment with steps taken by Government of Telangana, who have signed an MOU with NSE on 04th March 2022 to promote the MSME fraternity to participate on equity financing on NSE Emerge Platform through Initial Public Offerings (IPOs) and widen the scope of their business.
Sri Anil Agarwal, President, FTCCI said that when the Indian economy is providing us with such a conducive business environment, we should come forward and take the challenges of raising the bar of our companies, by raising the funds through SME IPO route along with traditional debt financing. He further urged the government of Telangana to provide the similar assistance for listing and raising money in SME stock exchanges as in the case of other states. He also stated that one of the state is currently giving a maximum subsidy of ₹30 lakh as an assistance for listing and raising money in SME stock exchanges and similar step will really promote the SME fraternity in Telangana.
Sri B. Gouri Sankar, Vice President & Regional Head BD-Southern Region, NSE shared insights about SME IPOs and delivered a very comprehensive outlook on how the SME IPO had evolved over the years. He mentioned the regulations governing SME IPOs and benefits of an SME company derive from listing on NSE Emerge platform. He further highlighted some of the major facts and figures to demystify the inhibition of the SMEs at large.
Mr. Navin Tekwani, Vice President and Head, Global Strategic Partnerships, Hem Securities Ltd said “SME IPO is the most economical fund raising option in the long run for businesses, as collateral based funding from banks and other lenders has its limitations. Events like these helps reach to more SMEs about the benefits of listing. 31 SME IPOs are already lined up in the first 3 months of 2023 and the queue ahead is much longer”.
Mr. Kripa Nivas Sharma, Co-chair, Capital Market & Investor Protection Committee, FTCCI had highlighted that the company proposing to raise funds from IPO route should have scalability, sustainability & transparency in their business. He further highlighted that more than 5o SME IPOs concluded on NSE Emerge and emphasised that the state has tremendous potential and lots of eligible SMEs to explore this platform.
The Seminar was attended by as many as 125 SMEs, CA firms, Investment and Merchant bankers. FTCCI proposed to organise such a program on a larger scale considering the interest and scope identified during the program from the esteemed speakers and participants alike.