MSME Listing

MSME LISTING

Making a public issue of securities and listing on stock exchanges is a dream of every entrepreneur. We groom MSME’s to get listed in stock markets.

msme

We are SME IPO consultant and SME IPO advisors! Traditionally debt/ loans used to be an instrument available to companies to raise funds for business. However, there are certain costs such as marketing, logistics, research, a brand creation where debt option is not available.

Companies also opt for Venture Capital / Private Equity. However, performance pressure and stringent conditions make such investment unattractive for most of the businesses.

Therefore, Initial Public Offering (IPO) on Main board i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) is the ultimate solution. Now after the introduction of SME Stock Exchanges small IPOs like Rs.2 Cr are also possible. SME IPOs are quick (3 to 6 months) and comparatively cost effective than Main board IPOs. Such listing entitles Companies raised a good amount of money from the public without any repayment or commitment. Also, SME IPO does not require any permission from SEBI. Further after certain period and criteria, such Companies are allowed to migrate to Main Boards of BSE & NSE.

We provide following Services to Companies for IPO Planning

ABOUT IPO’s

IPO Sizes

SME IPO size is Rs 1.50 Cr to 40.00 Cr in recent times. More than 200 Companies have listed on SME Exchanges. Main board IPO are usually on the higher side.

Suitable

SME IPOs listing is suitable for companies with low turnover, less capitalization but the potential for high growth in near future. Upcoming companies, startups, e-commerce, technology companies, infrastructure, developers, agro focused companies are few of them.

BENEFITS OF GETTING LISTED IN THE STOCK MARKET
TAX BENEFITS OF GETTING LISTED IN THE STOCK MARKET

The sale of unlisted shares in short-term attract the capital gain tax up to 30% as applicable to the taxpayer and the long-term capital gain tax of 10% without indexation and 20% with indexation.

The sale of listed securities in the short term attract the capital gain tax of 15% and there is no long-term capital gains tax provided it has been subject to Share Securities Transaction Tax. This makes it clear that the listing of shares is a very attractive option for SMEs.

ELIGIBILITY CRITERIA FOR LISTING ON NSE EMERGE PLATFORM

The following criteria should be complied with as on the date of filing the Public Offer Document with NSE as well as when the same is filed with RoC and SEBI.

ELIGIBILITY CRITERIA FOR LISTING ON BSE SME PLATFORM
OTHER REQUIREMENTS
DISCLOSURES
A certificate from the applicant company / promoting companies stating the following

a) ” The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).”
Note: Cases where company is out of BIFR is allowed.

b) There is no winding up petition against the company, which has been admitted by the court or a liquidator has not been appointed.

MIGRATION FROM BSE SME PLATFORM TO THE MAIN BOARD

The companies seeking migration to Main Board of BSE should satisfy the eligibility criteria It is mandatory for the company to be listed and traded on the BSE SME Platform for a minimum period of two years and then they can migrate to the Main Board as per the guidelines specified by SEBI vide their circular dated 18th May 2010 and as per the procedures laid down in the ICDR guidelines Chapter X B.

OUR CLIENT ENGAGEMENT PROCESS

Free Business Plan Consulting Session

A client can request for a free consultation session through the following options:

RESEARCH REPORT

The first deliverable will be in the form of a market research report. A draft version will be sent for feedback. The consultant should be informed of all changes needed. Changes will be discussed and incorporated into the document by the consultant. On completion, an amended version of the research report will be resent to the client.

Once all changes have been incorporated, an invoice will be sent through e-mail, for milestone completion payment. The invoice will be equal to 25% of the total project value. (Release of payment in the absence of any other written confirmation will be considered as acceptance of quality for each milestone).

All documentation will be sent via e-mail, in a secure non printable pdf format. The editable version of the complete business plan will be sent at the end of the project. All feedback and amendment requirements will have to be sent back to the consultant via the same e-mail ID.

REQUIREMENTS ANALYSIS

This is the first phase of the business planning process. On receiving the order, the consultcalive team will check the details submitted for accuracy and completeness. In the event that discrepancies are found, the client will be informed through the e-mail address provided. Should all the details be in order, the team will analyze and allocate resources for the project and consultcalivewill send an e-mail with details about the team/consultant assigned for the project.

The e-mail will also contain an invoice equalling 50% of the total package cost. This amount will have to be paid by the client as part of the requirements analysis milestone. The assigned team/consultant will commence working on the project once the first milestone has been funded.

STRATEGIC PLANNING

This section is the heart of the business plan. The engagement and acceptance model will be similar to the research report segment, where the consultant will send a draft version of the document for feedback and suggested amendments. The changes will be discussed, incorporated and sent back for further feedback. Once the section is approved, an invoice will be sent via e-mail. The invoice value will be equal to 25% of the total value.

All documentation will be sent via e-mail, in a secure non printable pdf format. The editable version of the complete business plan will be sent at the end of the project. All feedback and amendment requirements will have to be sent back to the consultant via the same e-mail ID.

FINANCIAL CALCULATIONS

This is the final segment of the business plan. The consultant will engage and send a document to capture costs and revenue numbers to the client. The consultant will analyze the numbers, create financials and present them in the form of tables and graphs. The draft financials will be sent for feedback and suggested amendments. Changes and amendments will be incorporated.

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