Mumbai: The Rs 330 crore, M D Inducto Cast Ltd became the 100th SME and one of the five SMEs to list on the Bombay Stock Exchange’s (BSE’s) SME platform on Thursday. Four out of the five companies are from Gujarat. The Bhavnagar based, three-year old M D Inducto Cast is the biggest manufacturing company on the SME Exchange and is part of the ship recycling to steel re-rolling MD group set up in 1991.
The SME exchange launched in 2012, which now has 100 companies listed on it, has the distinction of providing the cheapest way to raise funds through IPO’s according to the International Organisation of Securities Commissions. It is also the fastest growing with 40 SME’s listing last year. Over Rs 700 crore have been raised through IPOs and the returns have been seven to eight times, the highest of any global SME exchange, said Mahavir Lunawat, group MD, Pantomath Capital Advisors, who lead-managed the initial public offerings (IPOs) of three of the five companies.
He said market makers keep the stocks liquid with live quotes when necessary, as each company keeps five per cent inventory with them.Six of the 96 small and medium enterprises (SMEs) have migrated to the main exchange having fulfilled the conditions. Ten more have been given in principle approval to shift.
Mr Lunawat said that Life Insurance Corporation (LIC), India’s largest investor should keep aside a certain amount for investment in SME’s and this would encourage NRIs and high net individuals (HNIs) to invest in SMEs.
