Indian cloud computing startup E2E networks is set to list on NSE Emerge, the stock exchange’s platform for small and medium businesses. This was confirmed to Medianama by Tarun Dua, CEO of E2E Networks. The listing will go live in coming weeks. E2E is yet to submit its Draft Red Herring Prospectus (DRHP) as mandated by the Securities and Exchange Board of India (SEBI).
Blume Ventures, one of the major investors in the company, will continue to hold a stake in the company post listing, and will convert nearly one-third of its holdings. Other investors will also retain their stakes in the company.
Dua says that their company decided to go for the listing to have a market-determined evaluation.
E2E Networks has been into the business of providing Low latency Dedicated Servers and VPS Servers in India since 2009 and delivers solutions for hosting web and enterprise applications. The company says it has been profitable since 2009.
— Ashish Fafadia (@AshishFafadia) March 7, 2018
The Emerge platform by the National Stock Exchange was launched in 2013, intended especially for small and medium businesses. Emerge has recently begun its push for more listings. It is in talks in the SEBI to ease norms for listings. Recently the Uttar Pradesh state government signed a Memorandum of Understanding (MoU) with NSE for listing on Emerge. NSE also organised a tech conclave last year to attract more startups to go public.
Currently, the platform is open for SMEs whose post issue paid up capital shall be less than or equal to Rs 25 crores. Other conditions include annual sales not exceeding Rs 100 crore, and that at least 25% of the pre-issue share capital must be held by select institutional investors.
Emerge crossed the 100-listing mark in November last year, and currently has nearly 123 listed companies, according to its website.
BSE Ltd, formerly the Bombay Stock Exchange, also has a similar platform for SMEs, which crossed 200-listing milestone in October 2017.
Disclosure: E2E Networks provides web hosting for MediaNama