NEW DELHI: Small and medium enterprises (SMEs) raised a staggering Rs 811 crore through initial public offerings in 2016-17, more than the two-fold jump from the preceding fiscal.Rs 811 crore through initial public offerings in 2016-17, more than the two-fold jump from the preceding fiscal.
The huge fund-raising can be attributed to reforms and initiatives taken by the government to encourage the SME sector.
Funds raised through the issue were used for business expansion plans, working capital requirements and other general corporate purposes.
A total of 80 companies got listed with initial public offers (IPOs) worth Rs 811 crore in the last fiscal as compared to 46 firms which tapped the IPO route to garner Rs 304 crore in 2015-16.
In 2014-15, 37 firms made debut on the SME platform and raised Rs 271 crore. These companies are listed on the small and medium enterprise platforms of BSE and NSE.
“SME capital market is witnessing participation from a wider class of investors and the trend is expected to continue. Even institutional investors have started showing interest in SME investing and the market looks up to them with expectation.
“Most of the listed SMEs have added value to shareholders,” Pantomath Group Managing Director
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