BSE, NSE launch SME platform

The BSE SME Exchange, promoted by the country’s premier bourse BSE, on Tuesday, commenced operation with the listing of BCB Finance shares at 8 per cent premium.

The Mumbai-based non-banking finance company BCB raised Rs 8.85 crore through public issue of 35.4 lakh equity shares. As per the company’s pre-listing shareholding pattern, the new exchange found 198 investors, of which, 159 were small investors with investments up to Rs 1 lakh.

IKAB Securities, which is the market maker to the issue, holds 5.53 per cent. Ashok Samani, Usha Samani and Babulal Jain were largest shareholders in the company with 1.53 per cent each.

BCB has divested 30.78 per cent stake in the IPO raising little less than Rs 9 crore. Bharat Bagri and his family entities are promoters of the firm holding 69.22 per cent. The company has a market capitalisation of Rs 29 crore.

The shares listed with a premium of 8 per cent at Rs 27 and was trading at Rs 25.7 after volumes of 0.1 million shares at 1.20 pm.

Earlier speaking at the ceremony of BSE SME Exchange, Sebi’s whole time member Rajeev Agarwal said: “This launch will play important role in Indian SMEs growth. As a regulator, several regulations have been eased, at the same time, robust surveillance mechanism has been put in place. Investor protection will remain of prime importance.”

The government has been taking a number of schemes for MSMEs as they are facing the challenges of globalisation, higher cost of funds, knowledge management technology upgradation, infrastructure constraints, the Secretary for the Ministry of Micro, Small and Medium Enterprises (MSMEs), R K Mathur said.

MSMEs contribute 15 per cent to GDP and we are looking at raising the contribution to 22 per cent to GDP, he said.

BSE’s Managing Director & CEO Madhu Kannan said, “This is a significant event in the history of BSE. SMEs are building blocks of the economy and the capital markets have great potential to tap opportunities and help this sector grow.” It will provide opportunity to entrepreneurs to raise equity capital for expansion of SMEs, and also provide  opportunity for investors to  invest in good SMEs at early stage.