SMEs can unlock value & create visibility on BSE SME and Startup Platform: Ajay Thakur, Head – BSE SME and Startup

Close to 354 SMEs have been listed on BSE SME and Startup Platform to unlock value and raise funds.

Suyog Gurubaxani Funicular Ropeway Ltd, a Construction and Engineering firm, was recently listed on the BSE SME and Startup Platform, becoming the 354th company to do so. The company is a construction and infrastructure development company that builds and operates Funicular Ropeways Systems.

In an interview with, Shivshankar Lature, the Founder Director of Suyog Gurubaxani Funicular Ropeway and the Managing Director of Suyog Telematics Ltd, remarked, “I am the only person who has listed two firms in the BSE SME and Startup Platform.”

When asked why they decided to list on the market, he explained, “Finance comes in two forms: one from the bank (debt perspective) and the other from one’s own funds.” We’ll need funds when we’ve exhausted both choices, so finding equity partners and listing the company is the best option. We can share our profits with the shareholders instead of paying interest to the banks. This will also help to raise the company’s valuation and provide future financing choices from banks. The third step is to keep the growth aspect in mind because it will enable us to take on new tasks, Lature said.

Lature further said, We set the IPO price at Rs 45/- per share and offered a lot size of 3000 shares, effectively requiring a minimum investment of Rs. 1,35,000 from each shareholder. We are completely satisfied as a result of our systematic approach, and we have also decreased our debt by Rs. 30 crores, which will allow us to pursue new initiatives.

When asked whether he had any advice for SMEs, Lature said, “Companies like ours should consider listing.” We can dilute 25% of the stock while keeping 75% as promoter holdings, allowing the promoters to maintain control. Changing your business to a public limited company will enable you to get out of the family business, create jobs, and help the nation prosper. The BSE SME is an excellent platform for small businesses like ours.

Lature stated that by March 2023, the company intends to operate a ropeway in Daman (from Goghla beach to the fort) and another in Jejuri Khandoba shrine in Pune. We want to work on a BOT basis, similar to how road contracts are awarded, and because these are infrastructure projects, we’ll be able to attract capital from investors while also providing them with IT benefits.

Since September 2021, over 10 SMEs have been listed, including – Prevest Denpro Limited (Healthcare services & Pharmaceuticals), Markolines Traffic Controls Limited (Construction & Engineering), SBL Infratech Limited (Realty), Getalong Enterprise Limited (Textiles), Shri Venkatesh Refineries Limited (Trading & Refining), Promax Power Limited (Construction & Engineering), Samor Reality Limited (Realty) and Adishakti Loha and Ispat Limited (Distribution & Trading).

In a recent discussion with Ajay Thakur, Head – BSE SME and Startup, revealed that 354 firms have together raised a total of Rs. 3,782 crores, with a market capitalisation of Rs. 42,000 crores and touched an all time high of Rs. 42,134 crores. On how has the journey been, he said, Seven more firms have registered for listing on the BSE SME platform. Four of them are receiving permission and are expected to open soon, with one company having finished its IPO subscription, and another has started accepting applications. There have been 414 filings so far.

He added that around 122 businesses had already switched to the main BSE.

On Suyog Gurubaxani Funicular Ropeways Ltd becoming a listed company, he said, We listed their previous company, Suyog Telematics, five years ago. The company’s promoters had a good experience with their first company, which saw its market cap and revenue increase dramatically once it was listed from Rs. 10 crores with an Rs. 1 crore operating profit to Rs. 125 crores with an Rs. 27 crore operating profit and a 500-550 crores market capitalisation. This encouraged them and their co-promoter to apply for the Suyog Gurubaxani Funicular Ropeway Ltd listing. Investors subscribed to the issue after the merchant banker and the exchange facilitated his listing smoothly and seamlessly. It is the promoters’ second venture to be successfully listed on the BSE SME Platform, Thakur added.

Thakur further stated, “The BSE SME Platform provides the SMEs with the venue to raise equity funds to grow their business and transform them into big businesses. It’s a great platform to unlock the value of the company and create visibility.”