Explore the Market Possibility with Sme IPO
Everyone has dreams and most of us want our dreams to come true. Similar to big companies, small companies also dream of getting themselves listed on the stock exchanges in order to raise fund for there venture.
Going public provides SMEs with equity financing opportunities to grow their business from operations to expansion to inorganic acquisitions. Access to equity financing lowers the debt burden leading to lower financing costs and healthier balance sheets. The continuing requirement for adhering to stock market rules for the issuers lowers the ongoing information and monitoring costs for the banks.
Lesser compliance's compare to main board listing so convenient for SMEs. Half yearly financial results, shareholding pattern is to be complied with exchanges on a half yearly basis. No publication of financial results in a newspaper, only hosting on a company’s website is enough
Going for a public issue is most likely to enhance the company's visibility. Greater public awareness gained through media coverage, and research coverage by sector investment analysts provide the SMEs with greater visibility and help brand building which otherwise may remain a dream especially for SMEs.Income- tax Act offers immense benefits to companies if their shares are listed on SME Exchange
One of the major attractions for SME IPO remains the provision of migration to the main exchanges. Any company listed at the SME platform, after crossing the threshold of Rs 10 Cr Capital may migrate to the main exchange and upon crossing the threshold of Rs 25 Cr has to mandatorily migrate to the main exchange.