Shares of Akash Infra Projects will list on NSE's SME platform 'Emerge' while RMC Switchgears will list its shares on BSE's SME platform
New Delhi: To tap upbeat investor sentiment, two small and medium enterprises (SMEs)—Akash Infra Projects and RMC Switchgears—will come out with their initial public offerings (IPOs) next week to raise about Rs30 crore.
This is in addition to five SMEs that have already hit the capital markets this month. According to draft papers, Akash Infra Projects plans to mop up Rs25.5 crore through IPO, which will be open to public subscription between 28 February and 6 March.
RMC Switchgears is expected to garner Rs4.15 crore through the public issue.
The IPO will open on 28 February and close on 3 March. Proceeds of the issues will be utilised for business expansion plans and working capital requirements, among others. Shares of Akash Infra Projects will list on NSE’s small and medium enterprises platform—Emerge—while RMC Switchgears will list its shares on BSE’s SME platform.
The stock exchanges—BSE and NSE—had launched SME platforms in March 2012, becoming the only two bourses to offer such a segment in the country.
Since then, several companies got listed on them and some have even shifted to the main board.
The platform provides opportunity to SME entrepreneurs to raise equity capital for growth and expansion. It also gives immense opportunity for investors to identify and invest in good SMEs at an early stage. According to Prime Database, 41 SMEs together raised Rs358 crore through initial public offerings in 2016. Most of the funds were raised in September.