- Regulatory Action: The delay underscores SEBI’s focus on improving transparency and quality in SME IPOs.
- Strong Market Debut: Despite delays, the listing met market expectations with significant gains for investors.
- Future Impact: C2C Advanced Systems' robust demand and listing highlight investor confidence in the defence and aerospace sectors.
C2C Advanced Systems, a defence and aerospace solutions provider, made an impressive debut on the NSE SME platform on December 3, listing at ₹429.40 per share, a 90% premium over its IPO price of ₹226.
The IPO, open from November 22 to 26, had seen a massive subscription of 125.35 times, with high interest from retail (132.73x), Qualified Institutional Buyers (QIB) category (31.61x), and non-institutional investors (233.13x). However, regulatory concerns led to a temporary delay in the listing.
Key IPO Details and Listing Highlights
Category | Details |
---|---|
Listing Price | ₹429.40 per share (90% premium over ₹226 issue price) |
IPO Price Band | ₹214 – ₹226 per share |
Funds Raised | ₹99.07 crore (fresh issue of 43.84 lakh equity shares) |
Subscription Details | Retail: 132.73x, QIB: 31.61x, NII: 233.13x |
Grey Market Premium (GMP) | ₹240 ahead of listing |
Initial Withdrawal | 3.72 lakh applications worth ₹27 crore withdrawn after SEBI intervention |
Why Was the Listing Delayed?
The Securities and Exchange Board of India (SEBI) directed the company to address concerns regarding the accuracy of its financial disclosures:
- Appointment of Independent Auditors: SEBI required the company to engage independent auditors to evaluate its financial accounts.
- Monitoring Agency: The National Stock Exchange (NSE) was instructed to set up an agency to oversee fund utilization from the IPO proceeds.
These measures prompted SEBI to allow investors to withdraw their bids, leading to over 3.72 lakh applications being cancelled.
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Investor Demand and Performance
- Subscription: The IPO saw strong demand, with over 36.56 crore shares bid for, while only 29.15 lakh shares were available.
- Categories of Oversubscription:
- Retail Investors: Subscribed 132.73x.
- Qualified Institutional Buyers (QIB): Subscribed 31.61x.
- Non-Institutional Investors (NII): Subscribed 233.13x.
- GMP Prediction: The IPO commanded a grey market premium (GMP) of ₹240, indicating high expectations.
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