Grex to roll out online platform for unlisted firms to raise capital 

Pune-based Grex Alternative Investments Market is all set to roll out a stock exchange-like investment platform to connect unlisted companies with venture capital and high networth investors.

The trial run of the portal has already enrolled 160 companies, largely start-ups from e-commerce, IT, software and firms providing technology for marketing through mobile phones.

Despite, SEBI allowing the stock exchanges to open a separate institutional trading platform (ITP) for listing of start ups and eased listing norms, Grex feels that the new trading platform to be established by stock exchanges will not have an impact on it.

Manish Kumar, CEO, Grex, said SEBI has made its intention clear that it wants to stop start-ups going abroad to raise money and make them list on the new platform. “I feel the ITP will attract matured start-ups which are looking to provide exit option for its existing institutional investors or raising additional capital.

“We would enable grass root companies across sectors looking for funds to connect with investors,” he said.

Manish Kumar said while the listing criteria for companies is quite similar to that of stock exchanges and SME exchanges, the motive for listing on Grex is different. “Our intention is to enable unlisted entities and start-ups go for multiple round of funding by proving their worth, while investors in our portal will have a long-term view. The transaction charges vary from 2.5 per cent to 5 per cent. SEBI has asked Grex to restrict the fund raising activity to a closed group and disseminate information on unlisted companies to registered users only. It has over 100 registered investors with networth of ₹1 crore and annual income of ₹24 lakh. Registration of investors is done only through invitation and attracts an annual fee of ₹6,000.

The Companies Act allows private companies to have 200 investors. Companies seeking to raise funds through Grex should dematerialise their shareholding with CDSL and appoint an investment or merchant banker as its sponsor. Investors can also sell their stakes after the lock-in period.

The sponsor prepares the offer document and fixes the price. Investors have to set aside a minimum of ₹2 lakh a transaction. Once the target amount is collected it will be transferred into an escrow account of the company and shares allocated to investors.

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