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NSE EMERGE average IPO size triples after reaching 500th SME listing

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Published Date: 02 Sep 2024Updated Date: 27 Dec 20246 mins readBy MOFSL

Introduction

India’s National Stock Exchange (NSE) is one of the world’s largest derivatives exchanges based on trading volume. On July 22, 2024, it celebrated its milestone of listing the 500th small and medium enterprise (SME) on its NSE EMERGE platform. This significant milestone marks the exchange’s growth at various levels, including the number of listings, market capitalisation, Initial Public Offering (IPO) size, and capital raising.

What is NSE EMERGE?

NSE EMERGE is NSE’s initiative for startup companies and Small and Medium Enterprises (SMEs). It enables these companies to list themselves on the NSE without an IPO. Moreover, it helps them build connections with investors for funding.  

NSE EMERGE has impressively helped SMEs grow. It has given high-quality companies attention and offered them a platform to raise capital. As a result, it has boosted business growth, job creation, and the country’s overall capital formation.

Prizor Viztech Limited: 500th SME listing

The 500th SME to be listed on NSE EMERGE is Prizor Viztech Limited. Established in 2017, the company provides security and surveillance solutions with a vast range of CCTV cameras. After issuing an IPO that started on July 16, 2024, and ended on July 18, 2024, Prizor Viztech Ltd. got listed on NSE SME on July 22, 2024.

The first company to be listed was Chennai-based Thejo Engineering. The 500th company’s listing affirms the platform’s success. It indicates how much SME companies trust India’s capital markets and their inclination to participate in them.

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NSE EMERGE: 2019 - 2024

●   The rapid growth of listings

It took over five years for the first 100 companies to get listed on the EMERGE platform. However, the most recent 100 listings were concluded in six months. This active participation confirms the confidence of all participants in India’s Ministry of Micro, Small & Medium Enterprises (MSME) growth story.

●   Rise in market capitalisation

The SME Board has recorded a phenomenal rise in market capitalisation since 2019. The numbers have increased from Rs. 12,500 crore to around Rs. 1,75,000 crore. This growth indicates the platform’s contribution to unlocking SME value and how proactively SME issuers are turning to public markets for fundraising.

●   Tripling of IPO size

The public capital markets have gained immense popularity among SME issuers as a fundraising avenue. The average NSE EMERGE IPO size has tripled to Rs. 37.57 crore in FY 2024-2025 (Year to Date or YTD) from Rs. 13.44 crore in FY 2019-2020. This jump shows that NSE EMERGE has played an active role in giving companies a reliable and trusted source for raising capital.

●   Tremendous capital raised

As of 2024, the platform has 501 listed companies across various sectors. The total capital raised is more than Rs. 11,780 crore.

●   Fully-integrated business model

NSE’s comprehensive business model comprises trading services, exchange listings, indices, clearing and settlement services, market data feeds, financial education, and technology solutions offerings. The exchange also supervises compliance by listed companies and trading and clearing members with the Securities and Exchange Board of India’s (SEBI) rules and regulations.

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Conclusion

NSE EMERGE was developed with the objective of helping SMEs and startups raise capital with minimal cost and compliance compared to regular IPO. As of 2024, the platform has listed 500 SMEs. The first was Thejo Engineering, and the 500th was Prizor Viztech Limited. During the last five years (2019 - 2024), the platform’s market capitalisation has reached a whopping Rs. 1,75,000 crore from Rs. 12,500. The NSE EMERGE IPO size has tripled, with companies collectively raising capital worth Rs. 11,780 crore.

 

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