Mumbai: Ashishkumar Chauhan, chief executive officer of BSE, has said that as many as over 1,000 new companies are expected to list on Bombay Stock Exchange in the aftermath of Goods and Services Tax, according to a report on Bloomberg.
With this the initial public offering or the IPO counter at market will also see heightened activity with companies going for more share sales to the public. Chahaun is of the view that smaller firms will become tax-compliant after GST comes into effect.
"Smaller firms will be more inclined to go public because they'll no longer have anything to hide. Some 1,000 companies will list on his bourse over the next four years," Bloomberg quoted Chauhan as saying.
The report added that some 74 companies raised around Rs 27,600 crore or $4.3 billion through first-time share sales on the BSE in the year ended March. The figure was highest since 2010. "We expect a huge spurt in listings," Chaihan said.
According to Chauhan, the bourse wants to help companies raise $100 billion a year over the next four years "from initial and secondary offerings of stocks and bonds, up from the present $30 billion a year".
The Bombay Stock Exchange that traces its roots to the 1850s is also seeking to increase its registered investor base to 100 million in five years. Presently BSE has an investor base of 34 million, Chauhan said.
