What is SME IPO in India?

What is SME IPO in India?

Small and medium enterprises (SMEs) are the major contributor to Indian Economy. They provide employment to over 40% of workforce in India and contribute around 45% of manufacturing output (as of Dec 2014).

In India, due to their low scale and poor adoption of technology, SMEs have very poor productivity. Financing is the biggest challenge and the lack of it is the main reason for an SME going out of business.

SME is a separate platform opened up by Stock Exchanges in India to help SMEs to raise fund through investors in stock market.

Bombay Stock Exchange BSE, countries oldest stock exchange offers platform called 'BSE SME' for SMEs.

National Stock Exchange (NSE), the largest stock exchange in India offers platform called 'EMERGE' for SMEs.

 

SME IPOs have garnered strong interest from investors in recent years. This is visible in the huge subscription levels as well as the quality of participation. Now, even institutional investors are becoming interested in SME offers.

Check our SME IPOs section to get up to date information about the past, current and future offers. In addition, you can make use of basic valuation metrics such as Earnings Per Share (EPS), Price by Earnings (P/E) ratio, Return on Net Worth (RONW), and Net Asset Value (NAV). The platform also offers a lively discussion forum where readers can get the latest details of Grey Market Premium (GMP) of SME IPOs. Although grey market is an informal setup and not recognized by stock exchanges, grey market premium of several IPOs has correctly predicted eventual listing prices.


Visit HireCA.com Now