SMEs Boost India's Capital Markets with Record Listings and Market Capitalisation

Small and Medium Enterprises (SMEs) are actively turning to capital markets for funding, achieving significant milestones in listings and market capitalisation on the NSE and BSE as of June 2024. Experts at the 10th CII Capital Markets Conclave highlighted the critical role these markets play in India's economic growth.

Small and Medium Enterprises (SMEs) are increasingly turning to capital markets for funding. As of June 2024, 780 SMEs were listed on the NSE and BSE, raising approximately Rs 11,000 crore, according to a senior official.

The combined market capitalisation of these SMEs has surpassed Rs 1.6 lakh crore, said Shekhar Chaudhary, director of the financial markets division at the department of economic affairs. Speaking at the 10th edition of the CII (East) Capital Markets Conclave, Chaudhary stressed the vital role capital markets play in driving India's economic growth.

A report on SME Initial Public Offerings (IPOs) was released during the event, with experts discussing how capital markets empower SMEs and contribute significantly to the nation's GDP. Additionally, Chaudhary noted that nine NGOs have raised Rs 12 crore through a social exchange platform, with about 100 NGOs registered for future fundraising. Kamala K, BSE India's Chief Regulatory Officer, expressed confidence in capital markets as pivotal in India's journey to becoming a developed nation by 2047.

(With inputs from agencies.)