Hem Securities Limited is a financial solutions provider to SMEs and MNCs since 1981. It is Category I Merchant Banker registered with SEBI, main broker on leading exchanges, i.e., BSE, NSE and member of CDSL, MCX, NCDEX providing bouquet of financial and capital market services under one roof. It enjoys pan India presence with over 300 outlets in 20 states catering to 1.25 lakh retail clients.

Under the Merchant Banking division, it efficiently handles SME IPO, Direct Listing, ITP Listing, IPO Syndication, Open Offer Transaction, Delisting, Fairness Opinion, Valuation Certificates, etc. The collective and combined advantage of its vast distribution network and resource mobilisation capability has given it a unique edge over its competitors that allows it to offer reliable financial solutions to its valued customers.

Hem is serving the SME segment with a mission to build wealth for its investors by offering them best financial services through trading and investment strategies based on ethical and transparent business practices and mutual trust while ensuring complete investor protection.

Its strength lies in its expertise to provide one-stop solution to various financial and capital market related needs of its clients.

Challenges

During the 2015-16, about 44 companies were listed on SME Platform of BSE and NSE together. It is targeting to get a similar number of companies listed by Hem alone by cashing on the existing pipeline and resources. Many companies that were helped in listing on the SME platform of BSE have been lauded for their excellence performance. These have also experienced a steep rise in their growth and market capitalisation.

There are 152 companies that are listed on BSE SME Exchange with a market capitalisation of Rs 12,444 crore, out of which, 18 companies have migrated to the Main Board.

Solution

• Its dedicated efforts in this area are backed by the confidence of its promoters and employees who have become experts in this niche by now.
• It regularly conducts SME IPO awareness campaigns and road shows every month along with exchange across all geographies of India towards achievement of its desired target.
• It has conducted more than 50 workshops in last one year towards capacity building of SME companies and motivated them to list.
• Domain experts from Hem provide its clients with valuable inputs and suggestions on how to enhance and unlock the value of their business.
• The workshops conducted address their concerns and issues with regard to the concept of listing.
• Its business development teams are aggressively involved in meeting the promoters of SME companies across India in order to highlight the facts and benefits of listing on the SME platform of the nationwide stock exchanges in India.
• It also conducts workshops with Chartered Accountants, Company Secretaries, Trade Associations and the likes of it to deliver the concept of SME listing.
• In-house research keeps an eye on the market trends that is also shared with its members and clients.

Benefits

• More than 84 per cent of companies listed by Hem on BSE-SME are trading above their Issue Price.
• It advised 3 clients for takeover recently.
• Hem individually holds more than 10 per cent market share in Direct Listing of Companies from regional stock exchanges to nationwide stock exchanges.
• It brought Pritika Autocast Limited to the ITP Board of BSE with highest profits of approximately `2.5 crore in the entire ITP segment.

These efforts have made Hem the only Merchant Banker active in SME listing, having a large brokerage base across India. Its expertise today is being leveraged by the regulator, exchanges and SME customers alike.

There has been a spurt in the interest of SMEs for raising funds and market is slowly witnessing an uptrend as number of companies considering for an IPO is continuing to grow.