Small And Medium Enterprises See Record Run On The Stock Market, Over Rs 2,200 Crore Raised In 2018

Small And Medium Enterprises See Record Run On The Stock Market, Over Rs 2,200 Crore Raised In 2018View of the Bombay Stock Exchange (Hemant Mishra/Mint via Getty Images)

More than 133 Small and Medium Enterprises (SMEs) have raised over Rs 2,200 crore from the capital markets so far this year, as reported by Business Standard.

Though the total number of IPOs (Initial Public Offerings) has remained the same, 30 per cent more capital was raised by these companies in 2018. An IPO is the first time a company sells its shares to the public prior to which it is considered a private company with a limited number of shareholders.

The capital raised by SMEs this year, by listing their shares on NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), is also the highest since the introduction of such platforms in 2012.

It should be noted that this year’s trend is a continuation of last year’s performance. In 2017, SME’s raised over Rs 1,785 crore spread of 132 deals. This was three times higher than the funds raised in 2016.

Indian stock exchanges also recorded the highest number of IPOs anywhere in the world in the first six months of 2018, according to an EY (Ernst & Young) report.

Recently, the NDA government also announced a scheme wherein MSMEs (Micro, Small and Medium Enterprises) would be given loans of up to Rs 1 crore within 59 minutes.