KASSIA sees buoyancy in BSE SME platform after SME IPOs success rate

Bangalore, 9 Dec (KNN) As per a review by the Karnataka Small Scale Industries Association (KASSIA), the BSE SME IPO index has grown multi-fold over the last year.

In terms of return on investment, an investment of  INR1 lakh into the index a year ago would have yielded INR 8 lakh today, said KASSIA.

Explaining the contrast situation, the association said the same investment in the S&P BSE IPO Index would have yielded just INR1.71 lakh.

KASSIA has welcomed the rapidly growing investor interest from the general public in the Small & Medium Enterprises (SME) sector, which was indicated by the tremendous returns on SME IPOs.

For smaller companies, KASSIA said, the SME exchange offers an easy way to raise equity and support the business, rather than relying on banks. Several top investors have been buying into some SME, it observed and expressed the hope that this channel would open up to micro enterprises too in due course of time.

This remarkable bounce in the BSE’s Small and Medium Enterprises fundraising platform over the last few years, has come as a much needed alternative to bank lending, KASSIA said, given the reluctance by some banks to lend to SMEs.

The BSE SME platform, along with the National Stock Exchange’s NSE Emerge, focuses on helping smaller companies raise capital from investors. After raising capital through an IPO, the shares trade on the SME exchange.