Pune-based software consulting firm, Alphalogic Techsys is the first startup scheduled to be listed on the Bombay Stock Exchange’s (BSE) Startup platform, on September 5. The company’s total issue of 7.36K shares will open on August 23, at the price of INR 84 per share.
The minimum investment in the company is fixed at around INR 1.3 Lakh, in compliance with the BSE’s listing criteria. The company expects to raise raise INR6.18 Cr through its shares.
Alphalogic will use the capital generated from the market to expand further in the western countries and Southeast Asian regions. Currently, it claims to be growing at the rate of CAGR 40% in the last four years. Alphalogic claims to work with global clients ranging from early stage startups to established SMEs and Fortune 500 companies from over 12 countries.
BSE’s Startup Platform
BSE has launched its startup listing platform in December 2018, to facilitate funding for the deserving startups by enabling them to raise capital from the market. According to BSE, “the Startups Platform enables the listing of SMEs from the unorganised sector scattered throughout India, into a regulated and organised sector.”
The criteria for listing on BSE startup platform includes, the startup should be registered with MSME/DIPP or its paid-up capital should be minimum INR 1 Cr. The company should have been operational for a minimum of two years before the date of filing, it should have a positive net worth among other financial criteria.
Further, the BSE listings are focused on companies from sectors such as IT, Biotechnology and life science, 3D printing, spacetech, ecommerce, defense technology, drones, nano technologies, artificial intelligence, big data, virtual reality, online gaming, robotics, holographic technology, genetic engineering, and more.
Back in 2013, India’s largest stock exchange, the NSE, had also launched a similar startup listing platform called Emerge ITP. The platform connects growing businesses to a pool of sophisticated investors while offering a wide variety of exciting investment opportunities to investors.
Later in October 2018, the regulatory body SEBI had proposed the changes in its ‘Institutional Trading Platform’ (ITP) after it failed to help the ecosystem because of adverse rules and regulations. In addition to this, SEBI has also made changes to the number of investor categories, relaxed shareholding norms and reduced trading lot amount.