The platform which is expected to go live on July 9th will facilitate the listing of companies across sectors such as IT, ITES, biotechnology and life sciences, 3D printing, space technology and commerce, AI, big data, robotics, and others.
Investors in the startup ecosystem applauded the Bombay Stock Exchange (BSE) decision to launch a platform for new age companies.
“It’s a great step towards easier access to capital and bringing liquidity to early stage investments. All developed economies have similar platforms, and this will increase the depth and attractiveness of early-stage investments for entrepreneurs and investors,” said Girish Shivani, Co-Founder, YourNest.
The platform which is expected to go live on July 9 will facilitate the listing of companies across sectors such as IT, ITES, biotechnology and life sciences, 3D printing, space technology and commerce, AI, big data, robotics, and others.
“Going public means a radical change in the mindset of the promoter as it means deeper and more stringent compliance, timeliness and transparency reporting,” added Shivani.
Shailesh Vickram Singh, Managing partner, Massive Fund said, “India has its own challenges when it comes to compliances and things are little more complicated in the world of startups. However, we have seen that present government is quite progressive and is always open to working out the challenges so I believe that this shall not be a real challenge.”
From the investor point of view, Singh added, “It will open up the flow of capital to the companies as well as unlock many investments. There are many small profit-making companies which have not been able to raise capital while Indians continue to buy gold worth USD 35 billion per year. This step may change the economic path of India forever.”
The BSE announced the startup platform in its SME segment. While talking about the SME segment of the country, Singh said, “Indian SME need capital and need capital beyond 36 percent interest rate debt. Only a culture of equity and not of debt can propel India towards a GDP growth of more than 10 percent. I think this step is the best step.”
Shivani added, “They are following the NSE Small Exchange model. It can become an attractive segment for them.”
The exchange also stated that for listing on the platform, the company needs to have a pre-issue paid up equity share capital of a minimum of Rs 1 crore. It should have been in existence for a minimum period of three years on the date of filing the draft prospectus with BSE. Additionally, it should have a positive net-worth.
