C2C Advanced Systems Listing Postponed After SEBI Ordered To Appoint Independent Auditor

C2C Advanced Systems IPO listing on the stock exchanges will be postponed, which was initially scheduled to go public on November 29. This delay is due to the company’s need to appoint an independent auditor and submit a report to both the NSE (National Stock Exchange) and SEBI (Securities and Exchange Board of India), as outlined in regulatory reports.

Regulatory Requirements for Independent Audit

As per the notice from the regulator, C2C Advanced Systems must appoint an independent auditor. This auditor is required to conduct a thorough audit of the company’s financial accounts and submit an independent report. The completion of this process is a necessary step for the company before it can proceed with its listing.

Option for Investors to Withdraw Applications

The notice also specifies that the company must offer investors, including anchor investors, the opportunity to withdraw their applications before the share allocation process begins. This provision ensures that investors can reconsider their commitment to the public issue based on the new circumstances. Furthermore, the notice emphasized that no new subscriptions will be allowed during this period.

Monitoring of Fund Usage After Listing

To ensure the proper use of funds raised through the public issue, the NSE will establish a monitoring agency. This agency will oversee how the company utilizes the IPO funds post-listing, ensuring transparency and accountability.

Details of the IPO and Funds Raised

C2C Advanced Systems IPO planned to raise ₹99.07 crore through a public issue of 43.83 lakh shares, priced at ₹226 per share. As of November 21, the company had already secured ₹28.23 crore from the anchor investors, who purchased 12.49 lakh shares at the upper price band. Notable investors include Aarth AIF, Bengal Finance, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital, Negen Undiscovered Value Fund, and Shine Star Build Cap.

Business Focus and IPO Fund Utilisation

C2C Advanced Systems specializes in providing customized software and software-enabled systems for mission-critical defence applications used in the military and security sectors. The company plans to utilize the funds raised from the IPO to purchase fixed assets, including both hardware and software, for its current operations. Additionally, a portion of the funds will be directed toward the establishment of an Experience Centre in Dubai, further expanding the company’s international presence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.