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Initial Public Offering(IPO)

ABOUT SME IPO :   

As per the official estimates, there are about 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises in the country. Since MSMEs forms such a large part of our economy, the proper functioning of such enterprises is necessary. Most of the MSMEs are dependent either on their personal finance or on Bank finance. Most MSMEs have leveraged themselves with the Bank and financial institution to the extent that the burden of the finance cost affects the growth of the company and acts as a hurdle in the company’s growth potential. To tackle this, the company shall break the stereotypes and shall look raise funds through the capital market.

An MSME company can dilute its equity and raise capital through Equity Market. Raising through equity market capital has no interest cost and the company has doesn’t have to pay any service cost for such capital. MSMEs can use the capital market to raise funds and expand their company in a cost-effective manner.

ROLE OF GRETEX IN SME IPO

Gretex will act as Lead Manager to the issue, we are responsible to complete the entire listing process. The process can be classified as below;

  1. Pre – Issue: The lead manager takes up the due diligence of the company’s operations/ management/ business plans, etc and additionally drafts as well as design offer documents, prospectus, statutory advertisements, and memorandum of association. The lead manager shall ensure compliance with the stock exchanges, RoC, and SEBI including finalization of prospectus and RoC filling.
  2. Post – Issue: The lead manager also draws up various marketing strategies for the issue. Post issue activities include management of escrow accounts, dispatch of refunds, finalization of trading and dealing of instruments, Submission of final offer document with ROC / SEBI and Stock Exchanges, Completion of Issue and allotment process and Listing of Shares on Stock Exchange, etc.

Benefits of Listing

Interest Free Capital
Liquidity for Shareholder
PAN India Presence
Business Expansion
Distribution of Risk
Migration to Main Board after 2 years
Reduce Finance Cost
Unlock Value
Employee Incentive

ELIGIBILITY CRITERIA FOR LISTING

Sr.No BSE NSE
1

Post Issue Paid-up Capital

The post-issue paid-up capital of the company (face value) shall not be more than Rs. 25 crores.

Post Issue Paid-up Capital

The post-issue paid-up capital of the company (face value) shall not be more than Rs. 25 crores.

2

Networth

Positive Networth.

Networth

Positive Networth.

3 Tangible assets
Net Tangible Assets should be at least Rs 1.5 Crore.
4

Track Record

The company or the partnership/proprietorship / LLP firm or the firm which have been converted into the company should have a combined track record of at least 3 years.

Or

In case it has not completed its operation for three years then the Company/Partnership/Proprietorship/LLP should have been funded by way of loan/equity by Banks or Financial Institutions or Central or State Government or its undertaking, or its Group Company should have been listed for at least two years either on the Main Board or SME Board of the Nationwide Exchange.

 

The Company or the entities or the entities which have been converted into the Company should have combined positive cash accruals (earnings before depreciation and tax) from the operation and its net worth should be positive.

Track Record

Track record of at least three years of either

i. the applicant seeking listing; or

ii. the promoters****/promoting company, incorporated in or outside India or

iii. Proprietary / Partnership firm and subsequently converted into a Company (not in existence as a Company for three years) and approaches the Exchange for listing.

 

****Promoters mean one or more persons with minimum 3 years of experience in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally

 

The company/entity should have positive cash accruals (earnings before depreciation and tax) from operations for at least 2 financial years preceding the application and its net-worth should be positive.

For updated and Detailed Listing criteria please visit: https://www.bsesme.com/static/getlisted/criteriaisting.aspx?expandable=0
https://www1.nseindia.com/emerge/corporates/content/eligibility_criteria.htm

NUMBER OF TRANSACTIONS

+0
Number of IPO Completed
Rs.0cr
Total Funds raised
Rs.0cr
Value of raised funds today

IPO SUCESS STORY

Sr. No. Name of the company Sector Location Issue Price Issue Date CMP Issue Size
1 Veeram Ornament Limited Jewellery Mfg. Ahmedabad 45 23-12-2016 50.1 511.65
2 Jash Dealmark Limited FMCG products Mumbai 40 15-03-2017 51.5 540
3 Yug Décor Limited Plywood & Laminates Ahmedabad 26 18-05-2017 46.9 288.08
4 Riddhi Corporate Services private Limited BPO Ahmedabad 130 12-06-2017 193.65 1235
5 Dhruv Wellness Limited Pharmaceuticals Mumbai 18 31-08-2017 82.85 501.12
6 A&M Febcon Limited Engineering Services Ahmedabad 18 01-09-2017 17.6 668.16
7 Sagar Diamonds Limited Jewellery Mfg. Surat 40 14-09-2017 19.2 1352.4
8 Siddharth Education Services Limited Tutorial coaching Mumbai 30 29-09-2017 14.75 932.4
9 Kids Medical System Limited Health care Products Ahmedabad 30 11-12-2017 37.98 600
10 Diggi Multitrade Limited Real estate Mumbai 13 11-12-2017 23.3 338
11 Suumaya Lifestyle Limited Garments Mfg. Mumbai 18 22-05-2018 21.05 1383.84
12 Debock Sales & Marketing Limited Agricultural Machine Mfg. Jaipur 20 24-05-2018 28 444
13 Deep Polymers Limited Plastic Mfg. Gandhinagar 40 08-08-2018 75 1524
14 Aaron Industries Limited Lift Mfg. Surat 38 20-08-2018 47.85 477.66
15 Mac Hotels Hotel Goa 24 19-09-2018 63 194.4
16 B&B Triplewall Container Limited Corrugated Box Mfg. Bangalore 36 28-09-2018 35.5 1999.08
17 BCPL Railway Infrastrucure Limited Railway Infrastructure Kolkata 35 05-10-2018 41.5 1701
18 Misquita Engineering Limited Washing Machine Component Supplier Goa 27 23-09-2019 59 193.32
19 Anuroop Packaging Limited Corrugated Box Mfg. Mumbai 13 08-11-2019 12.5 249.6