Regnum RTA

REG. No. : INR000004316

The Triumphant Ascension of the SME Platform of BSE in India

The Small and Medium Enterprises (SME) platform of the Bombay Stock Exchange (BSE) in India has remarkably reshaped the Indian business landscape. It has fostered entrepreneurship and bridged the gap between SMEs and potential investors, thereby empowering a formerly marginalized economic sector.

Launched in March 2012, the BSE SME platform aimed to provide small and medium enterprises access to capital. SMEs form the backbone of the Indian economy, contributing nearly 30% of the GDP and 45% to the country’s total exports as of 2021. However, their growth potential was often constrained by limited access to capital, a gap the BSE SME platform sought to bridge.

Since its inception, the BSE SME platform has shown significant growth. As of June 2023, over 500 companies have been listed on the platform, with a combined market capitalization of over INR 25,000 Crores (approximately $3.34 billion USD). An impressive surge from just 1 company listed in 2012 with a market capitalization of around INR 20 Crore.

These listed SMEs come from diverse sectors, reflecting the wide array of opportunities present within the Indian economy. From IT and technology (20%), manufacturing (30%), to services and retail (25%), and many other sectors, the platform has been instrumental in fuelling growth and job creation.

Moreover, the BSE SME platform’s success is also demonstrated by the companies that have graduated to the main board. Over 100 companies have made this successful transition, which indicates the robust growth potential that SMEs possess, and the platform’s effectiveness in nurturing these businesses.

The platform also offers an impressive return on investment (ROI). As of 2023, the BSE SME Index, which measures the performance of companies listed on the platform, has yielded an average annual return of approximately 15%.

Furthermore, the BSE SME platform’s success story is not merely about numbers. It is also about the thousands of entrepreneurial dreams it has helped to realize, and the millions of jobs it has contributed to creating in India.

In conclusion, the BSE SME platform has emerged as a game-changer for small and medium enterprises in India. It’s not just an exchange platform, but a growth catalyst, enabling businesses to scale and prosper in the competitive global landscape.