SME IPO is a golden oppurtunity for a small company to get listed on the stock exchanges. More than 20 countries operate separate SME exchanges. BSE SME and NSE Emerge are the dedicated platforms launched in India to help SMEs list with minimum compliance and cost as compared to the main board.
Following are the benefits of SME IPO:
- It helps SMEs access the capital markets and raise the equity capital required to grow their business or for acquisition.
- Equity financing also helps to lower the debt burden leading to lower costs and healthier balance sheet.
- SME IPO also helps in expanding the investor base so that the company is not dependent on few investors.
- It enhances the visibility through media coverage resulting in credibility and branding of the company.
- It provides an Exit option to the existing investors and also provided liquidity which gives confidence to new investors.
- It also gives an incentive to the employees as their ESOPs can be encashed and / or they can participate as shareholder in the growth of the company.
- Last but not the least, it encourages innovation and entrepreneurial spirit.
For More details, please contact us