SME IPOs Work!
SMEs contribute to over 30% of India’s GDP, 45% of industrial production, 40% of export and employ over a 100 million. SMEs face significant challenges on account of their size.
An Introduction to ESG
ESG stands for Environmental, Social, and Governance, representing a framework for sustainable business practices. The framework encompasses a wide range of elements, including environmental impact, social responsibility, and corporate governance standards.
A Primer on SME IPOs
As per the classification made by the government, SMEs are defined by their revenues or assets below a certain threshold, as below.
Business Transformation
Transformation is essential for businesses to remain competitive. Objectives of Business Transformation: Enhanced Competitiveness, Revenue Expansion, Cost Reduction & Profitability Expansion, Increased Efficiency & Productivity, Customer Centricity, Innovation & Agility, Risk Management, Talent Development & Engagement, Sustainability.
Indian Road Sector
Road Companies have underperformed both the Nifty and CNX Infrastructure Index; the reason? Is this a performance-related response or is this on account of a broader realisation that their business plans are not sustainable? Will these companies ultimately resort to merging with construction businesses? Will this expose investors to a new set of risks?
Value Building in The Tiles Sector
The Indian Tiles Industry is completely home-grown with limited access to international best practices. There is growing institutional investor interest in the sector. Several Tier 2 Companies have raised Capital to scale to Tier 1 Status. They are improving operations, adopting technology and addressing the evolving consumer behaviour.
De-constructing IPOs
India has a large pool of Small and Medium-sized Enterprises. SMEs contribute to over 30% of its GDP, 45% of industrial production, 40% of exports and employ over 100 million people. In recognition of their significance, the Government has undertaken several initiatives to promote & support their growth.
Development Funding
India has a large pool of Small and Medium-sized Enterprises (SMEs). SMEs contribute to over 30% of India’s GDP, 45% of its industrial production, 40% of its export and employ over a 100 million people. In recognition of their significance, the Government has undertaken several initiatives to promote & support their growth.
SME Challenges: The Low-Value Trap
Multiple Internal Challenges prevent SMEs from accessing the capital and know how required to reach scale. This affects profitability - which in turn poses a risk to their survival.
The Ideal IPO Candidate
Long-term profitability depends on a company’s cost structure. Good Planning, technology, efficient operations and effective management lowers costs - and increase Capital Efficiency.