Benifits on Listing on SME Stock Exchange
Companies can gain a lot from being listed on SME stock exchanges, including enhanced visibility, favourable capital gains tax treatment, valuation benchmarking, improved governance and internal controls, etc.
| Easy Listing | At lower cost, less time and without much regulatory compliance, SMEs can get listed on the SME Stock Exchanges with focused marketing. |
| Easy access to Capital / Funds | SME listing provides an avenue to raise capital through equity infusion for growth-oriented SME’s. |
| Enhanced Visibility and Credibility | The SME’s benefit by greater credibility and enhanced financial status leading to demand in the company’s shares and higher valuation of the company. Realistic valuations could be offered by investors rather than benchmarking with matured large Corporates on the main board of stock exchanges.+ |
| Encourages Growth of SMEs | Equity financing provides growth opportunities like expansion, mergers and acquisitions, thus being a cost effective and tax efficient mode. |
| Enables Liquidity for Shareholders | Equity financing enables liquidity for shareholders, provides growth opportunities like expansion, mergers and acquisitions, thus being a cost effective and tax efficient mode. |
| Equity Financing Through Venture Capital | Provides an incentive for Venture Capital Funds by creating an Exit Route and thus reducing their lock-in period. |
| Efficient Risk Distribution | Capital Markets ensure that the capital flows to its best uses and that riskier activities with higher payoffs are funded. |
| Employee Incentives | Employee Stock Options ensures stronger employee commitment, participation and recruitment incentive. |
| 100% IPO Underwriting | With 100% underwriting, the IPO would ensure that its fully subscribed. |
| New Class of Investors | SME Stock Exchange listing attracts new class of long-term Institutional Investors, interested to invest in exciting fast-growing companies |
| Migration to main Board on seasoning | Getting listed on SME Stock Exchange will allow companies to grow to serious size, conserve value and migrate to main board. |
