The PHDCCI-BSE MoU marks a new push to help small businesses raise capital. The PHD Chamber of Commerce and Industry (PHDCCI) has signed a Memorandum of Understanding with BSE Limited. The partnership will help micro, small and medium enterprises (MSMEs) access financing through initial public offerings (IPOs). The initiative focuses on building awareness about the benefits and process of listing.
PHDCCI-BSE MoU Aims to Ease Fundraising for MSMEs
Ranjeet Mehta, CEO and Secretary General, PHDCCI, said the partnership will help members raise funds for business expansion through IPOs. He noted the MoU targets MSMEs specifically. However, he added that businesses across the wider industry can also benefit from it.
Mehta pointed out that MSMEs struggle to access funds at reasonable cost. He said many of India’s roughly 8 crore MSMEs remain unaware of government schemes and financing avenues available to them. He explained that the MoU’s core objective is to run awareness programmes at the state and district levels. These programmes will teach MSMEs how to access funding through IPOs.
Under the partnership, BSE officials will educate MSMEs on the listing process. They will explain the benefits of becoming a listed company. They will also show businesses how raising funds through IPOs can support growth. The initiative aims to build broader awareness about equity financing among enterprises.
MSMEs Face Governance and Compliance Concerns
Sundararaman Ramamurthy, Managing Director and CEO, BSE Limited, explained why many MSMEs hesitate to list. He said concerns around finance, corporate governance and compliance requirements often hold businesses back.
Ramamurthy noted that small business owners often lack expertise in these areas. He said this gap creates fear around the responsibilities that come with a listing. He identified finding the right merchant banker as another common concern for smaller businesses. He said SMEs want a banker who understands their scale, charges fairly and offers quality guidance through the process.
Ramamurthy also flagged confidentiality as a concern for family-owned businesses. He said these businesses often guard their internal information closely.
Listing Helps Businesses Unlock Value
Despite these concerns, Ramamurthy said listing offers real benefits. He explained that family-run enterprises can unlock business value through listing while retaining a degree of ownership and control. He added that listing opens access to risk capital beyond traditional bank financing. He said strong performance after listing allows businesses to raise further capital and unlock greater value.
PHDCCI-BSE MoU Builds on Strong SME Market Growth
Ramamurthy shared data on India’s SME listing market. Around 760 companies across 27 states have raised ₹17,000 crore through the market so far. Their combined market capitalisation stands at around ₹2 lakh crore. Around 200 of these companies have since moved to the main board.
