C2C Advanced Systems IPO Hit by SEBI Action, Listing Postponed: Key Updates and Insights
The listing of C2C Advanced Systems' Initial Public Offering (IPO) has been postponed due to a directive from the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE), mandating compliance with specific requirements.
Key Action Points from SEBI:
- Independent Auditor Appointment:
C2C Advanced Systems must appoint independent auditors to evaluate its financial accounts. The company has initiated this process, and the report is expected to be completed within 2-3 days. - Investor Flexibility:
Investors, including anchor investors, are permitted to withdraw their IPO applications before the share allocation process. During this time, no new subscriptions will be accepted. - Monitoring Agency by NSE:
The NSE will establish a monitoring agency to oversee the utilisation of funds raised after the company’s eventual listing.
The delay highlights the regulatory measures enforced to ensure transparency, accuracy in financial disclosures, and compliance with standards before the IPO proceeds.
The company submits the report to NSE and SEBI, which says as follows:
“We refer to the directions received from National Stock Exchange of India Limited (“NSE”), vide letter no. NSE/LIST/3837E dated November 25, 2024. Accordingly, the issuer company is giving an option to withdraw the application from this IPO. Please contact your broker/ASBA banker through whom the bid was placed. This email is to be read along with the Red Herring Prospectus dated November 11, 2024, corrigendum dated November 20, 2024, and November 24, 2024,” C&C said in a statement.
The IPO had good interest from the investor community. At the end of Day 2, the IPO received bids for 31.10 crore shares against 29.14 lakh shares on offer. Retail investors were more pumped up, with 3.81 lakh individual investors bidding for 22.91 crore shares.
But given this new development, investors have the option to withdraw their applications.
How do you withdraw your application?
According to C2C Advanced Systems’ notice, investors who have applied for the IPO can withdraw their application by following these steps:
On Groww
- Step 1: If you have applied for C2C Advanced IPO through Groww, you will see a message board on the stocks explore page/screen.
- Step 2: Click on the CTA of the Message Board
- Step 3: Fill the Typeform
- Step 4: Groww will acknowledge the request received from you.
- Step 5: Groww, based on the request received, to cancel the bid on the NSE portal.
- Step 4: Groww to receive the acknowledgement (TRS slip) received from NSE, as required.
On Any Other Brokers
- Step 1: Investor to approach the designated intermediary for withdrawal of their application/bid.
- Step 2: Designated intermediary to acknowledge the request received from the investors.
- Step 3: Designated intermediary, based on the request received, to cancel the bid on the NSE portal.
- Step 4: Designated intermediary to receive the acknowledgement (TRS slip) received from NSE, as required. For online applications, the investor can contact customer care or helpline numbers of respective service providers.
The last day for withdrawal of application or bid is Nov. 28 before 3 p.m.
C2C Advanced Systems specialises in defence and aerospace solutions, and its IPO is expected to raise ₹99.07 crores via a fresh issue of shares. The proceeds are intended for capital investments in India and abroad, including upgrading facilities and establishing new centers.
Disclaimer: Investing in SME IPOs involves a high degree of risk. Such investments may be suitable only for investors with a high-risk tolerance and the ability to bear potential losses. Perform thorough due diligence and consult a financial advisor before investing. Invest wisely and at your own discretion.