C2C Advanced Systems has announced the postponement of its much-anticipated IPO listing, following regulatory instructions from the National Stock Exchange (NSE) and the Securities and Exchange Board of India (SEBI). The delay stems from the requirement for the company to appoint independent auditors and submit a report on its financial statements.
Reasons for the IPO delay
According to recent reports, SEBI and the NSE have mandated that C2C Advanced Systems engage an external auditor to conduct a thorough review of its financial accounts. The company has complied by appointing an auditor, and the report is expected within two to three days.
Although C2C Advanced Systems was initially scheduled to list its shares on the NSE's SME platform on November 29, 2024, the revised timeline for listing is now set for on or before December 3, 2024.
Option for investors to withdraw IPO bids
In light of the postponement, C2C Advanced Systems has provided an opportunity for IPO investors to withdraw their bids, including those from anchor investors. Investors wishing to cancel their applications or bids must do so by 3:00 PM on November 28, 2024.
As of the second day of bidding, the IPO had received a staggering 107.43 times subscriptions. However, by the third day, the subscription rate dropped to 101.64 times, indicating a potential withdrawal of bids by investors in response to the regulatory developments.
How to withdraw C2C Advanced Systems IPO bids
Investors who wish to withdraw their bids for the C2C Advanced Systems IPO can follow these simple steps:
Approach a designated intermediary – Investors need to contact their Designated Intermediary (DI) to request the withdrawal of their application or bid.
Acknowledgement of request – Once the request is submitted, the DI will acknowledge receipt of the withdrawal request.
Cancellation of bid – The DI will proceed to cancel the bid on the NSE portal, as per the investor's request.
Receipt of acknowledgment – The investor will receive a Transaction Slip Receipt (TSR) from the NSE as confirmation of the cancellation.
Impact of the IPO delay on the grey market premium (GMP)
The delay in the C2C Advanced Systems IPO listing has had a significant impact on the company's grey market premium (GMP). The GMP, which had been ₹245 the previous day, has now fallen sharply to ₹100. This decline in GMP indicates a drop in demand for the IPO, reflecting investor uncertainty following the postponement.
Despite this, the company’s IPO is still expected to list at a premium of around 44% over the issue price of ₹226, down from the initial expectation of a 100% premium.
C2C Advanced Systems: A brief overview
C2C Advanced Systems is a prominent player in the defence electronics sector, offering vertically integrated solutions tailored to India’s indigenously developed defence products. The company is looking to raise ₹99 crore through its IPO, which aims to fund further growth and expansion.
Should you invest in IPOs?
While the C2C Advanced Systems IPO faces delays, it is still an attractive option for investors looking to invest in IPOs in the defence sector. Investors should carefully consider the revised timelines and potential impacts on the stock price before making any decisions. The company's strong position in the defence market could present long-term growth opportunities, making it an option to consider if you are looking to invest in IPOs with a promising outlook.
If you're considering whether to invest in IPOs, especially ones like C2C Advanced Systems, it’s crucial to stay informed of any regulatory developments and the financial health of the company. The IPO's revised subscription status and GMP fluctuations serve as reminders to always perform due diligence before deciding to invest in IPOs.
By keeping an eye on these factors, investors can make more informed decisions and adjust their strategies accordingly when looking to invest in IPOs like C2C Advanced Systems.
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