Asia’s second-largest stock exchange company, BSE, is the first stock exchange company to get SEBI approval to start a “startup platform”. BSE Startup platform has been actively encouraging companies to get initial Public Offering (IPO) supporting SMEs and startups growth. It is a noteworthy initiative from BSE and ICICI.
The Startups platform provides an opportunity for investors to make an entry into a company, and they also have a ready-made platform to exit. Depending on how well the stock performs, the startups can after two years, migrate to the main board of the stock exchange,– said Ajay Thakur, Head of BSE SME and Startups
BSE has been partnering with private banks like HDFC bank (since 2019) and Yes Bank (Since September 2020) to promote Small and Medium Enterprises (SMEs) and startups to get listing on the exchange platform.
Recently, BSE and ICCI signed an MoU to support the mission. ICCI will assist in evaluating SMEs and startups for listing on the BSE SME board. It will conduct various campaigns and offer networking workshops to raise awareness among the startups of the advantages of going public with an IPO.
Through BSE and ICICI association, it will help the listed SMEs and startups gain visibility among the investor network. The startups and SMEs can, therefore, leverage ICICI’s industry connections to gain global recognition through the mentorship and be featured on government announced programs, acceleration funds, international presence, and global business relations.
Through ICCI, we believe more startups and SMEs will get adequate exposure on the benefits of listing on an exchange and will be able to comprehend the functioning of the capital market in a better way – said Ajay Thakur, Head of BSE SME and Startups
BSE startup was launched in December 2018. Since then, only two companies Alphalogic Techsys and Transpact Enterprises, have been listed on the platform. This has made BSE step up and take additional measures to encourage more and more startups.
The MoU between BSE and ICICI focuses on bridging the gap between SMEs and startups and empower them to gain a listing on the stock exchange.