@BaluGorade Even food staples which are dmart packed are of lower quality. Only branded products are available at competitive prices.
e.g. Try Dmart n Tat sampann poha.
@aravind - what’s your view on the Kaveri project for India. Do you see that India will indigenous able to develop its own engine?
Can india take help from Russia?
@MicrocapsPraWin @GingerTrader44 they do it, u can’t do anything. Moreover people are not that smart and local shopkeeper do it at ease. Branded retail charge more but u can trust the quality.
Shyam,
The SME platform is one of the biggest fund raising opportunity for SMEs to access public funds to grow their business and create value for stakeholders.
Sure, there will be a few rotten eggs but overall this is going to fuel innovation by dynamic young founders and drive economic growth for India.
Off late, i am seeing many people taking a sledgehammer to the entire SME ecosystem as if it is a plundering machine for founders to loot a gullible public.
I remember a time 25-30 years ago when companies like Suven Pharma, Nagarjuna Construction, Neuland Labs, Vimta Labs were all small companies and were able to access capital markets without a 1000 page prospectus and today are giant market caps.
So also many SME cos of today are showing signs of taking off and creating substantial value by raising growth capital from public market.
I am worried that just because of a few rotten apples, this wonderful growth engine will be stopped or throttled back substantially.
I am hearing that conditions such as FCF positive etc are going to be imposed on new SME listings. Most SME companies are in investment mode and are fast growing and need to raise capital to fuel their working capital and capex needs, so how can they be fcf positive?
This is exactly the kind of disastrous thinking that is not in our line with our long term economic growth ambitions as a country.
The right approach would be to build up regulatory capacity to evaluate clearance at DRHP stage and subsequent investigation/prosecution if wrongdoing is suspected by founders, bankers, auditors...anyone proven of wrongdoing. All our exchanges and regulators are well funded to do this investment in infra and people.
As a nation, we are always suspicious of our own success and risk taking without remembering that all sustainable growth and value creation in countries like the USA is driven by risk taking investors and bucaneering founders.
Where there is opportunity, there will be fraudsters out to dupe people but regulators should encourage investors to do proper due diligence through mass advertising campaigns as they have plenty of money lying in their bank accounts instead of throwing the baby out with the bath water and throttle back fresh capital issuances.
We have to believe that investors are wise people who will do their homework before putting their hard earned money in specific companies, this is capitalism at its best.
Regulation has to be light touch with adequate disclosures up front and stringent penalties for wrongdoings.
Having said all this, i am an interested party in my above view as i am invested in many SME listed companies and many aspiring SME listing wannabes, so pleade judge my views as an interested party.
@GunavanthVaid can add