The MSME sector in Uttar Pradesh is now eying big and companies are in the process of listing on the Bombay Stock Exchange (BSE). As many as 20 MSME from UP have been listed on the BSE and the National Stock Exchange (NSE) in the last one year. The total market capitalisation of these companies is estimated to be Rs 230 crore.
The objective is to scale up their business and help them compete both nationally and internationally as they will be able to raise capital from the market. While the firms are voluntarily jumping onto the listing bandwagon, the Uttar Pradesh government is also acting as a facilitator. The government has identified key sectors, including logistics, food processing, manufacturing, IT, plastics, leather, textile etc, and will give priority to the MSME, incorporated in the last five years, for listing.
At 55 lakh, UP has the third highest number of demat accounts nationally. The state also has the largest concentration of MSMEs in India at over 90 lakh, with the sector accounting for almost 60% of the state’s industrial output.
Additional Chief Secretary, MSME & Export Promotion, Navneet Sehgal said 12 companies have been listed on the BSE while eight in the NSE. The government has asked the stock exchange to proactively facilitate the listing of UP firms so that the state MSME sector is better equipped to face the growing challenges in the market.
“The department is planning to create awareness among the state MSMEs about the process and benefits of listing on the stock exchange by holding workshops and knowledge sessions,” Sehgal said.
He recently presided over a meeting with senior officials of the BSE and NSE to discuss the listing roadmap for UP, which is aspiring to become the country's first $1-trillion economy in the next few years.