Ahmedabad (Gujarat) [India], February 27: Capital and goodwill are two imperatives for operating any business. In fact, they are cardinal for running it profitably, as capital creates value through investments, and goodwill creates value by reducing overall business risk. One of the best ways to generate capital under equity financing while increasing a company’s goodwill is through an IPO, which refers to the public issuance of newly issued stock when a company goes public for the first time.
IPO can be pursued for capital collection, issuing shares to investors, or gaining higher share valuation. According to reports, 40 Indian corporates raised approximately Rs 59,412 crore through main board IPOs in 2022. As for SMEs, 87 of them raised Rs. 1460 crore in the first nine months of 2022.
This emerging trend of IPO for SMEs and the impressive returns of the SME IPO index has highlighted an unequivocal shift in investors’ interest in the new tale of India’s SME economic explosion. In 2023 as well, this category is anticipated to be incredibly alluring to both domestic and NRI investors placing their bets in it.
Tapanshi Finanziell’s SME IPO services – An all-time solution for your SME’s growth
IPO services have enormous potential for the growth trajectory of SMEs in India. Listing on BSE & NSE can help them improve their chance of business prospects, whereas public awareness through media coverage can contribute to their higher credibility. It will increase the valuation of the company and demand for its shares.
Tapanshi Finanziell’s IPO services for SMEs can effectively help SMEs go public, get listed on prominent stock exchanges, NSE and BSE, and get equipped with various other benefits that back their growth. The six main advantages of using Tapanshi’s SME IPO services include –
Goodwill, Branding, and Visibility
IPO builds brand recognition, allowing customers to trust the company. With Tapanshi’s IPO services, you can enjoy premier business growth opportunities and enhance your credibility as it helps you to increase the value of the shares by providing your company with the opportunity of getting listed on one of the leading Indian stock exchanges, NSE. The SMEs that get listed on NSE will benefit from global acceptance, improved credibility in the eyes of Dealers, Vendors, Banks, etc., and better business opportunities. Also, with less listing cost, it can help you trade the shares of your company at more than 2.25 terminals throughout India.
Business Growth
Tapanshi helps in pledging your SME’s share with the bank as collateral. By helping you improve your credit score, it can help you lower your bank interest by 1% to 1.5%. It returns benefits in case of foreign/ NRI investment in your company and promotes the acquisition of other businesses at any price because section 56(2) does not apply to listed corporations.
Taxation benefits
Assisting your SME to get listed, helps you and your subsidiaries avoid taxation under Section 56(2), get charged with a 20% tax rate on short-term capital gains as opposed to 30% for unlisted companies, and have your long-term capital gains exempted from taxation.
Regulatory benefits
It helps you to reduce your compliance to half-yearly, as opposed to quarterly. It simplifies the IPO process for you, as, after becoming listed, only exchange approval remains mandatory; no more SEBI approval is needed. The listing also helps you become eligible for all the advantages derived by main board-listed corporations and rule out restrictions on the preferential allotment.
Promoters/ company benefits
It can help promoters unlock the value of their shareholding in the company through a rather inexpensive listing that benefits the company as well. It can help you prepare for a potential MEGA IPO or to migrate to the main board after two years.
Valuation and wealth creation
An increase of 1Rs. can create a value of Rs.15-25 increase in share price. Being aware of this, it helps you unlock the value of your company’s shares by helping you become a market player. Also, it helps the business to show actual profitability in its accounts.
When a business goes public, it must carefully plan, carry out, and oversee actions across several functional areas that require close collaboration. To accomplish this, help from professional firms like Tapanshi Finanziell can lower the risk of execution, minimize surprises along the way, increase project efficiency, strengthen accountability and transparency, and encourage better problem-solving. With their services, companies have encountered pathways toward success. With an experienced management team and competitive IPO team, their customers have attained an increased valuation of their shares, capital formation, branding, and much more.
Conclusion
Due to reasonable values, high returns, and clearly defined growth paths, interest in SME company IPOs is increasing. People are now investing in SMEs, which will not only aid the expansion of SMEs but will also contribute to the growth of the Indian economy.
To carefully achieve the growth goal of going public, an SME needs to choose the right partner for IPO services who precisely determines the company’s requirements & addresses all the gaps. Sans proper consideration and preparation, the outcome of going public can be risky for an SME. IPO partners like Tapanshi Finanziell will expedite your IPO journey and help you become a successful public company.
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