C2C Advanced Systems IPO GMP surges 84% despite massive application withdrawal after SEBI's action

C2C Advanced Systems IPO GMP surges 84% despite massive withdrawal after SEBI's action

C2C Advanced Systems grey market premium (GMP) for shares has soared to 84 percent, even as the company faced a massive withdrawal of application following the postponement of its listing due to regulatory issues.

C2C Advanced Systems, a defence electronics solutions provider, allowed investors to withdraw their IPO applications until 3 pm on Thursday.

According to PTI which quoted the official data, over 3.72 lakh applications were withdrawn, with retail investors accounting for the bulk of the exits at 3.57 lakh applications.

High-net-worth individuals (HNIs) also displayed caution, withdrawing over 15,000 applications, while institutional investors reported eight withdrawals.

The IPO had initially garnered robust demand, with bids reaching 125 times the shares on offer. Investors had bid for 36.56 crore shares against a total availability of just 29.15 lakh shares, reflecting immense enthusiasm before regulatory concerns emerged.

Despite the regulatory setback, shares of the company continue to command a high GMP of Rs 190 in the unofficial market, indicating a significant premium over the issue price. According to Investorgain tracking grey market activities, this translates to an 84 percent premium.

The shares were offered in the price band of Rs 214-226 apiece. A strong GMP typically signals robust investor sentiment and potential listing gains. However, the actual listing price could vary from the GMP trends.

C2C Advanced SME IPO: You can withdraw your application by 3 pm on Nov 28 post-SEBI action; here's how

The Securities and Exchange Board of India (SEBI) directed the company to appoint independent auditors to review its financial accounts. Additionally, the National Stock Exchange (NSE) was instructed to establish a monitoring agency to oversee the utilisation of IPO funds.

In light of SEBI's directives, C2C Advanced Systems provided investors across all categories the option to withdraw their bids. The withdrawal window closed on Thursday.

In an email to investors, the company stated: "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."

The Bengaluru-based company clientele includes Indian Armed Forces, National Technical Research Organisation, DRDO, ABB, Thales, Hindustan Aeronautics Ltd, and Dassault Systemes.

The firm reported a revenue of Rs 43.22 crore and a profit after tax of Rs 9.73 crore at the end of September quarter.

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