Industries and Commerce Department of Telangana government along with GlobalLinker, signed a memorandum of understanding (MOU) with BSE (Bombay Stock Exchange) on Monday to help micro, small and medium enterprises (MSMEs) raise equity funds.
As per the official release, early in 2019, the Industries and Commerce Department of the state government had introduced Telangana State GlobalLinker portal as a way to digitize MSMEs of the state and to help them with their business growth.
"The Government of Telangana is focused on creating a conducive eco-system for promoting the growth of the MSMEs of the state. To address challenges that MSMEs face in their day to day operations, the Telangana Government offers various benefits on the portal like - free e-commerce store with a payment gateway and logistics capabilities integrated, the opportunity for buyers and sellers to connect with each other, support exports and more," it said.
It further stated that the partnership with BSE came into the picture to address a vital challenge of access to finance and increasing credibility of the MSME.
"BSE will provide intellectual and manpower support to create awareness about the importance and benefits of listing. Lack of awareness around this subject has led to a lot of preconceived notions that listing involves increased compliance levels, increased costs and more," it added.
Speaking about the MOU, Jayesh Ranjan, Principal Secretary, Telangana government said the engagement with BSE will provide the necessary hand-holding support and guidance to the MSMEs of the state.
"We are pleased to partner with BSE, as this engagement will provide the necessary hand-holding support and guidance to the MSMEs of the state. The state has taken various initiatives to provide the required support for MSMEs to expand their operations and become inspiring examples for others to follow. Currently, there are very few MSMEs registered on the stock exchange from Telangana and we would like to see these numbers grow soon," he said.
Sameer Vakil, Co-founder & CEO, GlobalLinker said a key to SME growth is access to capital, and the new arrangement with BSE will help Telangana State GlobalLinker members plan their capital raise.
"GlobalLinker is committed to making the business growth of SMEs simpler, more profitable and enjoyable. In doing so, it is partnered with Telangana State Government to digitise SMEs in Telangana. A key to SME growth is access to capital. The arrangement with BSE will help Telangana State GlobalLinker members plan their capital raise and better prepare them in improved management of their businesses in time to come," said Vakil.
Ashishkumar Chauhan, MD and CEO, BSE, said the association with Telangana government will help MSMEs of the state to have access to equity financing opportunities.
"The MSMEs in the state of Telangana play a vital role in the economic development of the state. They are also one of the major contributors for employment. One of the various challenges MSMEs face is the limited access to an alternative source of finance which increase their dependence on debt capital resulting in distorted capital structures and stifled cash flows. Through this association, MSMEs of the state can have access to equity financing opportunities to grow their business from expansion to acquisition," Chauhan said.
Ajaykumar Thakur, Head BSE SME and Startups, said that MSMEs are the backbone of the economy and therefore their growth is prerequisite for the growth of the state and the country.
"This association will help in creating greater awareness about the benefits of listing amongst MSMEs of Telangana. We are hopeful that this initiative will help in getting a lot of SMEs from the state listed on the BSE SME Platform which will contribute to their growth and generate employment," Thakur stated.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor