The company had received applications for 36.56 crore shares.
The Rs 99 crore IPO of C2C Advanced Systems has suffered a major setback. Over 3.72 lakh applications worth Rs 27 crore have been withdrawn after the company’s listing was postponed due to regulatory concerns. The defense electronics solutions provider had allowed applicants to withdraw their IPO applications till 3 pm on Thursday. According to the data, more than 3.72 lakh applications were withdrawn. This had a serious impact among individual investors, where 3.57 lakh applications were withdrawn.
Applications were received for 36.56 crore shares
The data shows that the HNI category also exercised a lot of caution and more than 15,000 applications were withdrawn. Institutional investors also started withdrawing and 8 applications in this category were withdrawn. Investors had initially shown a lot of interest in this IPO, but now the situation has completely reversed. In the IPO of C2C Advanced Systems, which specializes in defense and space solutions, investors had bid for 36.56 crore shares, while only 29.15 lakh shares were available.
SEBI had given instructions to the company to appoint an auditor
The company had fixed the price band of Rs 214-226 for each share for its IPO. SEBI directed the company to appoint independent auditors to evaluate its financial accounts. Additionally, the regulator asked the National Stock Exchange (NSE) to set up a monitoring agency to monitor the utilization of funds raised through IPOs.
SEBI had intervened in view of concerns related to quality and transparency.
Following regulatory intervention, all categories of investors were given the option to withdraw their bids, which closed on Thursday. This is the second time the Securities and Exchange Board of India (SEBI) has intervened in SME IPOs due to quality and transparency concerns.
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