SME IPO / Listing Advisory
SMEs have limited access to Equity funding from external resources like investments from Venture Capitalist or Private Equity Investors. They face a serious challenge on liquidity when they have to bring in margin money for working capital or for raising debt funding for projects. Further there is no avenue for them to raise equity funding for marketing or team building. This limitation of Promoter funding has hindered the growth of SMEs in a big way.
With the introduction of BSE SME and NSE Emerge listing platforms for SMEs, they could tap the Institutional and Retail investors to raise funding through a listing process. SMEs can raise funds and unleash their valuation of the company through this exchanges.
There are 2 platforms available for SMEs to raise funds through an IPO and list their shares
- BSE SME
- NSE Emerge
BSE was the first exchange to launch an SME platform and listed 320 SMEs as of December 2019 and raised over Rs 3,250 crores through this exchange.
NSE Emerge had listed over 200 companies as of Dec 2019 and the SMEs have raised over Rs 3200 crores through this exchange.
Venture Hub endevours to support SMEs to look for an opportunity to raise capital from these exchanges for their growth, reduction of debt and exit to investors.
The services Venture Hub provides include:
- Financial audit and study on the Company’s financial strength, weakness and the opportunity to raise funding.
- Develop a business plan and valuation of the Company
- Develop suitable capital structure and advise dilution of the stakeholding in the Company to raise capital through the SME exchanges.
- Make the Company ready for meeting the regulatory compliances for listing, due diligence, assist in implementing corporate governance norms and policies, appointment of independent directors, audit certification, etc
- Assist in appointing all the Professional Firms and Market Intermediaries required to list the Company
- Closely work with the Merchant Banker in Listing and post Listing Compliances.
In sum, act as an outsourced CFO during the listing process and raise long term Equity Capital for the Company.