Panaji: In a milestone that underscores the strength of local companies, Goan company Mac Hotels Ltd got its shares listed on the Bombay SME Stock Exchange on Thursday, making it the first small company from the state to access the capital market on the small and medium enterprise (SME) platform.
The listing was carried out by simultaneous ringing of the gong, in Goa and at the Bombay Stock Exchange. Post-listing Edwin Cotta, chairman, said that it is a great feeling to “have made the jump” to a listed company.
Cotta said that by raising equity capital and being a part of the stock market, “our ambition is to create value for ourselves as well as investors.”
He added that money raised from the issue of shares would be utilised to increase the room capacity and become a part of the country’s growth story.
“The travel and tourism industry boosts the local economy by earning foreign exchange and without losing the natural resources of the state,” he said.
The Cottas are first generation entrepreneurs from Agassaim and are in the state hospitality industry for about 28 years. The company Mac Hotels owns three hotel properties Park Avenue and Village Royale in Calangute and Hotel Miramar in Panaji.
The stock exchange debut was made in the presence of Ajay Thakur, president, BSE SME Exchange; Nilesh Cabral, Power Minister; Clifton D’Silva, Altina Securities, Mumbai; Alok Harlankar, director, Gretex Financial Services; staff and employees of Mac Hotels, as well as members of Goan industry, heads of the GCCI, the GSIA, Francis Silveira, MLA of St Andre, among others.
Urging family-owned companies to go public, Thakur said that interest among Goan enterprises to get publicly listed on the BSE SME exchange is increasing and in the next one year, he expects, “at least 10 Goan companies to go for listing on the SME exchange.”
Cabral pointed out that it would be advantageous for local companies to raise money from the stock market instead of paying high interest on bank loans.
“But the road to going public is not so easy because local companies lack proper papers,” he said.
Silveira added that going public is a serious job for small, local companies due to the high level of compliances required for listed.
D’Silva, advisor to Mac Hotels, said that the initial public offering (IPO) of equity shares was on September 19. The issue size was of 8,10,000 shares at Rs 24 (Rs 10 face value and Rs 14 premium) and was oversubscribed 1.5 times.
He said that the company shares opened at Rs 24.50 on listing and closed at Rs 25.80 per share. [NT]