Ahmedabad: India’s Micro, Small and Medium Enterprises (MSMEs) are becoming an important pillar for the economic development of the country, yet access to capital is still a major challenge for them. Running money without interest burden for India’s MSME region is still out of reach.
Micro, small and medium enterprises contribute 30 percent to the country’s GDP, employment to more than 11 crore people and also contributes 40 percent to exports.
Strong branding, financial discipline and strategic marketing play an important role in increasing and attracting investors. However, debt interval becomes a challenge for businesses and hinders expansion, which is why many institutions want to move towards IPOs, but are unable to reach the primary market for various reasons.
MSME IPOs with profitable and scalable business models can raise capital for the development of your business without interest burden. Capital created by MSME can not only be used for business, but will also help in early payment of loans.
The most important thing is that MSMEs can enter large market through IPO. Along with work, names and other criteria can also be evaluated. Promoters can maintain their ownership in the enterprise through IPO, improve corporate administration and encourage employees through ESOP. Around 60 million MSMEs are registered in India, out of which only 1000 MSME has raised capital through IPOs. Vivek Chechani said that more and more MSMEs can consider MSME as an option to raise business expansion, loan reduction and long -term capital requirements for working capital requirements.
Looking at the 2024 figures, an unprecedented growth in the Indian IPO market scenario was seen. More than 300 companies listed on the mainboard and SME platform collectively raised Rs 1,000 crore. More than 1.6 lakh crore funds have been collected.
India’s MSME area beats
The MSME region is important for India’s economic development. It contributes about 30 percent to the country’s GDP and contributes 40 percent to exports. It provides employment to more than 11 crore people. The MSME sector can contribute significantly to the target of making India a $ 40 trillion economy by 2047.
The President of the World Trade Center, Mumbai and the head of the All India Industries Association said that India would have to bridge the loan difference in the MSME sector to achieve this target in a phased manner. According to an estimate, the current business of MSME sector is Rs 1000 crore. It is facing a loan loss of Rs 25 lakh crore. According to market experts, MSMEs require long -term capital from the public through interest -free means including IPOs rather than risk capital.
