Mumbai, December 16: EAP Consulting Services LLP (EAP) jointly arranged a session with BSE, SME and Start-up, a platform of the Bombay Stock Exchange (BSE) that facilitates the listing of small and medium enterprises (SMEs) and start-ups and helps them raise funds from the public at its Navi Mumbai office.
Mr. Ajay Kumar Thakur, Head, SME & Startup, BSE Limited, delivered the SME and Startup listing session on Tuesday, 6 December 2022.
The initiative of BSE has been comprehended by EAP as the BSE SME Platform offers an entrepreneur and investor-friendly environment, which enables the listing of SMEs from the unorganised sector, helping them to be part of a regulated and organised sector. The listed SMEs will step into the threshold of the BSE SME Platform and foray into the world of finance for further growth and development. EAP consulting, in line with the framework provided by BSE SME will assist these SMEs in raising equity capital for their growth and expansion.
Also, assist Companies to migrate into the Main Board of BSE as per the existing rules and regulations.
As per Mr. Thakur, SMEs are a vital part of a developing country and play a significant role in its economic growth. They are quickly becoming an alternative asset class and the best way of investment.
The BSE had been trying to break the myth around SMEs’ compliance requirements. BSE has been conducting awareness programs in overseas markets to tell investors about the SME platform to enable them to invest their money in these companies. The SME platform offers a new funding source and allows companies to list with relatively lower compliance.
Mr. Thakur further added that SMEs enjoy varied benefits due to listing, including increased credibility among the stakeholders, bankers, investors, and many others. Companies can now use the SME listing to present themselves and help them to deal with their competitors. Listing increases public awareness through media coverage and publicly accessible information, leading to higher company credibility. SME listing stimulates liquidity, giving shareholders the opportunity to realise the value of their investments. It allows shareholders to transact in the shares of the company, sharing risks as well as benefitting from any increase in the organisational value. Most companies reach a level where additional capital is required to be infused to fund the company’s growth and expansion plans. Listed companies have the option to use equity as collateral if they do not want to dilute the stake any further. Going public is a method of overcoming these constraints; it increases visibility and improves public perception of the organisation, thereby improving employee value and morale. It may also lead to the hiring of new staff and may facilitate stock-based payments like ESOPs.
Mr. Thakur has also provided insights related to the fair valuation of companies, long-term business plans and a roadmap to achieve market leadership. He added the importance of the role played by professionals like Chartered Accountants and Company Secretaries in listing unlisted entities.
The program was attended by eminent companies in Navi Mumbai from varied sectors, like Infrastructure, Pharma, Chemical, Real Estate, EPC Contractors and many others to explore the possible benefits and challenges of SME listing. This program benefited companies operating in the city of Navi Mumbai with a passion to get listed on SME platforms. As a service offeror, EAP enables the clients to be more compliant and to prepare them for listing.
EAP’s consulting team members also contributed to the program to analyse the compliance of the listed companies. Mr. Thakur appreciated the initiative of EAP in conducting the event and expects to have more in the near future.
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Divya Agarwal
