Tue Nov 26 15:59:42 UTC 2024: **SEBI Intervention Delays C2C Advanced Systems’ Oversubscribed IPO**

NEW DELHI, Nov 27 – The highly anticipated initial public offering (IPO) of C2C Advanced Systems Ltd., a New Delhi-based defense electronics company, has been postponed. The Securities and Exchange Board of India (SEBI) has mandated the company appoint independent auditors to review its financial accounts before the listing can proceed.

The IPO, one of the largest SME offerings this year, was initially slated for November 29th on the NSE Emerge platform. It had garnered significant investor interest, receiving bids 115.4 times the number of shares offered by the close of subscription on Tuesday. The ₹99.07 crore (approximately $12 million USD) book-building issue was oversubscribed by a considerable margin.

However, following SEBI’s directive, C2C Advanced Systems announced the delay. The company has already appointed an independent auditor, with a report expected within days. The National Stock Exchange (NSE) will also implement post-listing fund usage monitoring. The IPO listing will be delayed until the independent auditor’s report is submitted to the NSE and SEBI.

The SEBI intervention has impacted the grey market premium (GMP), which reflects speculative trading before listing. The GMP has dropped significantly, although it still indicates potential listing gains. Investors, excluding anchor investors, have been given the option to withdraw their bids until November 28th. Detailed instructions for withdrawal have been provided by the company.

C2C Advanced Systems’ IPO comprised a fresh issue of 43.8 lakh shares, with a price band of ₹214-₹226 per share. The postponement marks a setback for the company, but the measures taken are intended to ensure regulatory compliance and investor protection.

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