BSE SME Exchange Hits 600 Listings, Raises ₹10,652 Crore

The BSE SME platform has marked a key milestone by surpassing 600 listings, enabling small and medium enterprises across India to raise ₹10,652 crore since its inception. This platform has evolved into a vital funding avenue, showcasing a significant rise in average IPO size and a shift towards larger capital raises.

Their combined market capitalisation now stands at an impressive ₹1.84 lakh crore. This growth reflects strong investor confidence and the platform’s supportive structure for India’s thriving SME sector.

IPO Size Nearly Tripled Since January 2023

From January 2023 onwards, the average IPO size on the BSE SME platform rose to ₹32 crore, a nearly threefold increase from ₹11 crore, which was the earlier average during March 2012 to December 2022. This indicates SMEs are now mobilising larger funds and scaling up operations significantly post-listing. In the recent period alone, ₹6,109 crore has been raised, compared to ₹4,544 crore previously.

SMEs Transitioning to Main Board

A noteworthy development is that nearly one-third of companies initially listed on the SME platform have migrated to the main board, reflecting business maturity and compliance strength. This trend underlines how SMEs are using the SME exchange as a stepping stone towards broader visibility and expansion.

Sectoral and Geographic Diversity Boosts Market Reach

The companies listed span various sectors and regions of India, symbolising the economic decentralisation and rise of regional entrepreneurship. The platform has become a true mirror of India’s grassroots enterprise movement, aligned with national economic goals.

Read More: Indian Startup Founders Actively Raise Personal Stakes Before Public Offerings!

Tech Upgrades and Future Outlook

BSE SME recently introduced a generative AI tool to pre-vet IPO documents, streamlining the listing process and making it more efficient. This move is aimed at accelerating SME participation further and reinforcing transparency in the IPO process.

Conclusion

The BSE SME platform's milestone of 600 listings and ₹10,652 crore fund mobilisation signifies robust SME access to capital markets. With growing IPO sizes, AI-driven innovations, and a strong transition rate to the main board, the platform is well-positioned to drive India’s economic growth in the years ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.