Tirupur: A suggestion to list micro, small and medium enterprises (MSMEs) in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) evoked lukewarm response from knitwear industrialists in the city.

A workshop on listing small and medium enterprises (SME) in the stock exchanges was conducted at the Tirupur Exporters’ Association (TEA) office last week. Head of the BSE SME platform Ajay Thakur delivered a special address.

MSMEs are depending on bank loans, borrowings from lenders and own capital to meet working capital needs, TEA executive secretary S Sakthivel said. “With the SME platform, the MSMEs can bank on the public listing for those needs and growth,” he said. “A knitwear business unit at Khaderpet is the only MSME from Tirupur to list in the BSE-SME platform and is doing well. Some more units have shown interest.”

For the equity options, there is a need for high backend works including documentation and there needs to be a separate team for it, said knitwear exporter N Jeyasekar. “So, it would be hard for the units, which are in initial stages or not steady.”

It depends on how the company owners think on diluting their shares, which would limit their ownership on making decisions, felt CII Tirupur chairman N Sreedhar. “In the present scenario, we do not know how many units may be interested,” he said.

Published On : 26-03-2019

Source : Times of India