IPO: 20 urban Msmes plan IPO to raise capital | Ludhiana News

Ludhiana: Around 20 Ludhiana micro, small and medium-sized enterprises (MSMEs) have now decided to go public (IPO) to raise capital through the stock markets.
The initiative is supported by the Chamber of Industrial and Commercial Undertakings (CICU) and its President Upkar Singh Ahuja has also confirmed that the association will support these MSMEs to achieve their dream.
Ahuja explained that given the difficulties faced by industrialists in raising capital from financial institutions, the stock market route is the best alternative, Ahuja said: “Raising capital through stock routes is the need of the hour as companies find it difficult to avail credit facilities from financial institutions.
“Recognizing the difficulties faced by entrepreneurs in raising funds, we recently organized a special session on IPOs, mergers and acquisitions, which was attended by BSE SME chief Ajay Thakur. During the session, participants were made aware of the benefits of listing with BSE SMEs and during the program 20 SMEs expressed an interest in listing.”
Ahuja further added: “Since the initial path to the IPO is a bit cumbersome, CICU has decided to take the responsibility of holding the interested MSMEs by the hand to make their dream of listing come true. Listing these 20 small companies will be our pilot project, after which we will encourage other eligible companies to come forward and support them as well.”
The decision to go public will open up several avenues for these MSMEs.
Farmparts Company Vice President JS Bhogal said: “An IPO is a shortcut to get into the financial world and it helps to unlock a company’s value and also reduce dependence on financial institutions. So far, only large industrial companies have taken this route of raising capital, but now, thanks to BSE-SME, alternatives are also available for small industries, which we will certainly make optimal use of.”
CICU Vice-President Didarjit Singh said: “Our association will set up a special task force to hold the 20 companies that have expressed interest in entering the stock market and raising capital.
“Discussions on the formalities, pros and cons of this way of raising capital have already been held with the country’s top financial analysts, including Sachin Gupta, Ankit Mohan and Gaurav Jain, who participated in the program we organized.”