Cuttack, Feb. 25: Odisha has enormous water and mineral resources, but its second-generation entrepreneurs have failed to cash in on nature’s bounty because of unsatisfactory banking response here, believes president of Cuttack Management Association T. Ramachandru.
There has been no significant increase in the number of small and medium scale industries in sectors related to water and mineral resources in the state.
Addressing a seminar, “Listing on Small and Medium Scale Enterprises (SME) Exchange, New Opportunity for Raising Capital”, in the city, Ramachandru said entrepreneurs could only raise capital through equity. Not only in Odisha, small and medium enterprises in other states have also been complaining of problems in accessing both debt and equity capital.
But, the Securities and Exchange Board of India (Sebi) has recently granted permission to the Bombay Stock Exchange to launch its SME exchange that will provide platform to small and medium companies to raise funds from primary as well as debt markets. “The main objective of the seminar was to create awareness about the benefits of listing the companies in the exchange so that they get maximum advantage,” he said.
“Through the SME exchange, we want to provide platform to small and medium enterprises and investors to come together and raise equity capital,” said chief executive officer of the SME exchange at the Bombay Stock Exchange Lakshman Gugulothu. He also said there were 30 million small and medium enterprises in the country, out of which one million could aspire to get listed in the next few years.
“Today, there is a huge gap between small and medium enterprises and corporate houses. The SME exchange has been designed to identify good companies and help them develop,” Gugulothu added. Another expert participating in the seminar said forming the SME exchange was a welcome move as most big companies once started as a small or medium enterprise.
“Ideas generate wealth. Under the present state of regulations, an individual’s capital may not be adequate and it is important to seek capital at right time,” said investment banker Kamlesh Gandhi.