Kolkata emerging as a leader in SME IPO Listings

In a significant development for the region's Small and Medium Enterprise (SME) sector, seven Kolkata-based companies have filed draft red herring prospectus (DRHPs) or Pre-IPO documents within a month, indicating their intention to list on the National Stock Exchange's SME platform, "NSE Emerge".

According to experts, Kolkata companies have recognized the importance and benefits of SME IPOs, such as increased visibility, increased purchase orders, and higher valuations, among others. This unprecedented increase in SME IPOs is accelerating quality development, resulting in a positive economic scenario in the region.

These companies are expected to raise more than Rs 200 crore through their Initial Public Offerings (IPOs) combined.According to industry experts, it has been a long time since a large number of Micro, Small, and Medium Enterprises (MSMEs) from the eastern region sought stock exchange listings.

The companies that filed DRHP or launched the IPO process are: Sylvan Plyboards, Rungta Greentech, Petro Carbon & Chemicals, Veritas Advertising, Tandhan Polyplast, QVC Exports, and Nephrocare India.

The interesting fact is that they are all revenue-positive, with a PAT of up to 10%.

This clearly indicates India's thriving IPO market, which is proving to be a powerful force in attracting major Indian-origin startups to relocate their overseas holding companies and bases to the country.

The rise in "reverse flips" from international bases to India, despite substantial tax costs, is primarily due to startups' desire to capitalize on value maximization through domestic public listing opportunities.

Furthermore, investor confidence in the country's resilient economic growth, and supportive government policies such as "onshoring Indian innovation" through various initiatives contribute significantly to this rising trend.