Tue Nov 26 14:45:29 UTC 2024: ## SEBI Scrutiny Delays C2C Advanced Systems IPO Listing

**Mumbai, November 26, 2024** – The initial public offering (IPO) of C2C Advanced Systems, a provider of electronics solutions to India’s defense industry, faces uncertainty following intervention by the Securities and Exchange Board of India (SEBI). The company’s listing on the NSE SME platform, initially scheduled for next week, is now delayed.

SEBI has mandated C2C Advanced Systems to appoint independent auditors and submit an independent financial accounts report. This action stems from a complaint received by the regulator, prompting the need for further scrutiny before share allotment. Consequently, a window for investors to withdraw their applications has been opened until 3 PM on November 28th.

The grey market premium (GMP) for C2C Advanced Systems shares has plummeted from ₹245 (a 108.41% premium over the upper price band) at the IPO’s launch to just ₹100 (a 44.25% premium). While market experts advise investors to base their decisions on the company’s fundamentals rather than grey market indicators, the decline reflects the impact of SEBI’s intervention.

The IPO, priced between ₹214 and ₹226 per share, saw overwhelming retail investor participation, with the retail portion oversubscribed by 132.28 times. Overall subscription stood at 125.11 times. The company plans to utilize the IPO proceeds for infrastructure upgrades, debt repayment, and working capital.

C2C Advanced Systems, established in 2019, boasts clients including DRDO, ABB, Thales, HAL, and Dassault Systèmes. While the company reported a net loss in FY22, it turned profitable in FY23 and FY24, with revenue growing at a significant CAGR. However, the SEBI investigation and subsequent delay cast a shadow on the near-term prospects of the IPO. Investors who wish to withdraw their applications can do so through their brokers.

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