The IPO received bids for 36.56 crore shares as against 31 lakh shares on offer. The company planned to raise around Rs 99 crore through the issue, which is one of the largest in the SME segment this year.
It is to be noted here that the company has given an option to investors to withdraw the application from this IPO after regulators pointed at some concerns regarding the auditing of the company.
The withdrawal window for QIB and NII categories will be up to 4:00 pm and retail up to 5:00 pm on November 26. Only withdrawal windows for all categories will be allowed on November 27 and November 28 between 10:00 am to 5:00 pm.
According to reports, Sebi has asked C2C Advanced Systems to appoint an independent auditor and get an independent report of financial accounts.
Also Read: SME IPO of C2C Advanced Systems hit by Sebi action, listing date postponed
The IPO listing, hence, is postponed by 2 to 3 days and the same will be on or before December 3, according to the revised schedule. The company is likely to finalise the share allotment on or before November 29.
The Sebi directive has had an impact on the company’s shares in the grey market as the GMP crashed nearly 60% from the highs. It is currently at Rs 90 over the issue price.
This is the second time an SME IPO has come under scrutiny from the regulators and postponed its listing. Earlier this year, Sebi had asked BSE not to proceed with the listing of Trafiksol ITS Technologies amid serious concerns over misuse of the funds received from the IPO.
C2C Advanced Systems specialises in the development of complex systems for defence, homeland security and aerospace sectors. It also delivers bespoke, cutting-edge solutions to all the arms of the defence forces involving the integration of complex weapons and sensors.
The company also offers command and control systems for industrial platforms, focusing on supply chain and logistics virtualization. Its expertise includes system integration, system architecture, software development and testing, which involved delivering a combat management system to the Royal Malaysian Navy.
In FY24, the company achieved a revenue of Rs 41 crore, EBITDA of Rs 18 crore, and a PAT of Rs 12 crore.