C2C IPO: 3.72 Lakh Applications Withdrawn After Regulatory Concerns

New Delhi, Nov 28 (PTI) The Rs 99-crore initial public offering (IPO) of C2C Advanced Systems has faced a setback, with over 3.72 lakh applications worth Rs 27 crore being withdrawn following the postponement of the company's listing due to regulatory concerns.

The defence electronics solutions provider allowed applicants to withdraw their IPO bids until 3 pm on Thursday.

Going by the data, over 3.72 lakh applications were withdrawn and the fallout was severe among individual investors with 3.57 lakh applications being withdrawn.

Additionally, high-net-worth individuals (HNIs) also showed significant caution, with over 15,000 applications withdrawn. Even institutional investors backed away, with eight withdrawals reported in that segment, the data showed.

This is a sharp contrast to the overwhelming initial interest in the IPO. The public issue of C2C Advanced Systems, which specialises in defence and aerospace solutions, had seen demand soaring to 125 times with investors bidding for 36.56 crore shares, while only 29.15 lakh shares were available.

The shares were available for subscription in the price band of Rs 214-226 apiece.

Sebi directed the company to appoint independent auditors to evaluate its financial accounts. Additionally, the regulator asked the National Stock Exchange (NSE) to set up a monitoring agency to oversee the utilisation of funds raised through the IPO.

Following regulatory intervention, investors across all categories were given an option to withdraw their bids, a window that closed on Thursday.

"We refer to the directions received from NSE, vide letter ... 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 had said.

This incident marks the second time Sebi has intervened in an SME IPO over concerns about quality and transparency.