The new year is bringing good news for SME companies listed in the stock market. New rules for migration to the mainboard for SME companies will come into effect from the new year. With this, many small companies listed on the SME platform are now going to get a chance to become a part of the mainboard.
These companies will be eligible for migration
The new guidelines for migration from SME platform to mainboard on stock exchanges will come into effect from January 1. BSE had issued new guidelines regarding this in November. According to the new guidelines, companies which are listed on the SME platform for at least 3 years and have at least 250 public shareholders can migrate to the mainboard.
These conditions will also have to be fulfilled
Companies wishing to migrate to the mainboard will also have to fulfill some other conditions. For example, the company should have a net worth of at least Rs 15 crore during the last two financial years. They should have made operating profit in at least two of the last three financial years. They should have profit after tax in the financial year immediately preceding the year of migration.
Participation of retail investors will increase
The stock exchanges have issued these guidelines for inclusion of listed SME companies in the mainboard at a time when a large number of SME IPOs have been seen in recent times. year 2023 More than double the number of initial public offers was seen in the SME segment compared to the mainboard during 2017-19. The interesting thing is that many SME IPOs got a strong response from investors. Especially retail investors embraced them.
So many companies on BSE SME platform
By moving from SME segment to mainboard, companies can get the benefit of higher retail contribution. By migrating to the mainboard, their bid lot size will be reduced to one share, which will become an easier deal for retail investors. Currently, there are about 300 companies on the SME platform of BSE, whose combined market capitalization is more than Rs 1 lakh crore.
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