As an expert, I would say that listing on an SME Exchange, such as the BSE SME Platform or NSE Emerge, can provide significant benefits for SME owners. Not only does it offer access to equity capital for business expansion and unlock company value, but it also enhances visibility and credibility with various stakeholders, such as shareholders, clients, employees, and government.
Listing on an SME Exchange allows SMEs to enter the market cost-effectively without diluting promoters’ holdings and with a faster issue process compared to mainboard fundraising. Moreover, listed SME shares enable access to future funding and can serve as a currency for business acquisitions.
The SME Exchange also presents an opportunity for investors to invest in developing, modest-sized companies at an early stage, while providing liquidity to existing equity investors and promoters through the trading of company shares. Additionally, corporate employees may benefit from development and profit by becoming shareholders.
Finally, investing in listed securities of an SME is tax-efficient as compared to unlisted companies, with a lower short-term and long-term capital gains tax. In summary, SME stock Exchange listing can provide multiple benefits for SMEs, their investors, and employees.
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This reply was modified 12 months ago by OnPage.