SMEs set record by raising Rs 1,785 crore through IPOs in 2017
Spurred by investor interest, 132 small and medium enterprises (SMEs) raised a record Rs 1,785 crore through initial public offers […]
Sarabjit Kaur January 3, 2018
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Spurred by investor interest, 132 small and medium enterprises (SMEs) raised a record Rs 1,785 crore through initial public offers (IPOs) in 2017, which was more than three times the funds raised in the preceding year. Funds raised were used for business expansion plans, working capital requirements and other general corporate purposes. A total of 132 SMEs got listed with IPOs worth Rs 1,785 crore last year as compared to 66 firms garnering Rs 540 crore in 2016 through the route, according to a data compiled by Pantomath Research. Besides, 2017 witnessed more fund-raising than aggregate capital garnered in past five years cumulatively. Overall, the firms had mopped up Rs 1,315 crore in last five years. Together, these 132 firms have a market capitalisation of more than Rs 30,000 crore. “The year 2017 has been pinnacle in SME capital market and we expect this trend to continue in 2018 as well,” Mahavir Lunawat, group managing director at Pantomath Advisory Services Group said. Besides, average initial share-sale offers have shot up to Rs 13.42 crore last year from Rs 8.18 crore in 2016. The IPO chart in the year is led by Zota Healthcare that raised Rs 58.50 crore, followed by Euro India Fresh Foods Ltd, which mopped up Rs 51.26 crore. Geographically, Gujarat continued to dominate the IPO space by contributing 51 firms on SME bourses, followed by Maharashtra (39), Madhya Pradesh (11), Delhi (8), Rajasthan (6), Telangana (4), West Bengal (3) and two companies each got listed from Andhra Pradesh and Punjab. The companies which got listed during the period under review represent diverse industry base such as media and entertainment, manufacturing, textiles, engineering, finance, chemicals, agriculture, food processing and construction.