SMEs Secure ₹11,000 Crore from Capital Markets, Highlighting Sector’s Growing Role in India’s Economy

Small and Medium Enterprises (SMEs) are increasingly leveraging capital markets for funding, with a reported 780 SMEs listed on the NSE and BSE as of June 2023. These companies have collectively raised approximately ₹11,000 crore. Shekhar Chaudhary, director of the financial markets division at the Department of Economic Affairs, shared these insights at the 10th edition of the CII (East) Capital Markets Conclave.

The market capitalization of these SMEs now surpasses ₹1.6 lakh crore, Chaudhary noted. He emphasized the crucial role capital markets play in fostering economic growth and development in India.

The event also saw the release of a report on SME Initial Public Offerings (IPOs), which highlighted the potential of capital markets to significantly boost the country’s GDP by empowering SMEs. In the social enterprise sector, nine NGOs have raised ₹12 crore via a social exchange platform, with around 100 NGOs registered with NSE and BSE preparing for future fundraising efforts.

Chaudhary further mentioned that West Bengal represents 5% of the total Assets Under Management (AUM), ranking among the top ten states in per capita penetration, with Kolkata featuring in the top five cities for AUM contribution.

Kamala K, Chief Regulatory Officer of BSE India, expressed optimism that capital markets will be pivotal in India’s progress towards becoming a developed nation by 2047.