SME Stock Migration To Mainboard Drops Over 80% In 2024
Date
7/17/2024 2:16:37 PM
(MENAFN- KNN India)
New Delhi, Jul 17 (KNN) In a significant shift from previous years, the migration of small-and-medium enterprise (SME) Stocks to the mainboard has seen a dramatic decline of over 80 per cent in 2024.
According to data from PRIME database, only six SME stocks have transitioned to the mainboard thus far this year, compared to 32 in 2023 and 37 in 2022 during the same period.
The annual figures paint a similar picture, with 38 stocks migrating in 2023 and 60 in 2022.
This sharp decrease coincides with the implementation of new guidelines by exchanges, which market experts suggest have raised the bar for migration.
Effective January 1, 2024, the revised criteria for SME stocks to migrate to the mainboard include a post-issue paid-up capital exceeding Rs 10 crore, a minimum market capitalisation of Rs 25 crore, a net worth of at least Rs 15 crore in the previous two financial years, and a minimum listing period of three years on the SME platform.
Previously, companies were only required to complete three years on SME platforms to be eligible for migration, which remains a voluntary decision.
The SME platforms, launched by exchanges in 2012, have seen fluctuating fortunes. After a slow start, they gained momentum in 2017, with over 100 issues and fundraising surpassing Rs 1,500 crore. However, activity declined sharply in 2019 and remained subdued during the initial years of the COVID-19 pandemic.
A resurgence occurred in 2022, fuelled by low interest rates, culminating in a record-breaking 2023 with 182 public issues raising Rs 4,686 crore.
Since 2012, over 1,000 companies have listed on SME platforms, with approximately 320 migrating to the mainboard.
(KNN Bureau)
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