SMEs Tap Capital Markets, Raising Rs 11,000 Crore

Small and Medium Enterprises (SMEs) are increasingly turning to capital markets, with 780 SMEs listed on the NSE and BSE as of June 2023. These companies have collectively raised Rs 11,000 crore. The market capitalisation of these SMEs now exceeds Rs 1.6 lakh-crore. Experts underscored the importance of capital markets in India's economic advancement at the CII (East) Capital Markets Conclave.

Small and Medium Enterprises (SMEs) are increasingly turning to the capital markets for funding, with 780 SMEs listed on the NSE and BSE as of June 2023, raising approximately Rs 11,000 crore, a senior official stated on Wednesday.

Shekhar Chaudhary, director of the financial markets division at the department of economic affairs, revealed that the combined market capitalisation of these SMEs now exceeds Rs 1.6 lakh-crore.

Speaking at the 10th edition of the CII (East) Capital Markets Conclave, Chaudhary highlighted the crucial role capital markets play in propelling India's economic growth and development.

A report on SME Initial Public Offerings (IPOs) was unveiled at the event, with experts discussing the potential of capital markets to empower SMEs and significantly contribute to the country's GDP.

Additionally, Chaudhary noted that nine NGOs have raised Rs 12 crore through a social exchange platform, and around 100 NGOs are currently registered with the NSE and BSE for future fundraising activities.

West Bengal accounts for 5 per cent of the total AUM, ranking among the top 10 states in per capita penetration. Kolkata joins the top five cities for AUM contribution, he added.

Kamala K, chief regulatory officer of BSE India, asserted that capital markets would be pivotal in India's journey toward becoming a developed nation by 2047.

(With inputs from agencies.)