C2C Advanced listing to be postponed after SEBI asks company to appoint independent auditor

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The listing of C2C Advanced Systems will be postponed until the company appoints an independent auditor and the auditor submits the report to NSE or SEBI, said people in the know.

The regulator has asked the company to appoint independent auditors plus get an independent report of financial accounts as per the notice.  C2C Advanced Systems was set to get listed on November 29.

"The reason for the appointment of an independent auditor was because the regulator received a complaint from an investor," said a person directly aware of the development to Moneycontrol. We couldn't source what the complaint exactly was about and will update the story later.

The notice also said that the company has to give an option to the investors (including anchors) to withdraw their applications if they want, before the share allocation. It also said that no new subscription is bound to happen.

The notice also mentioned that NSE will have a monitoring agency set up on usage of funds post listing.

The company had planned to raise Rs 99.07 crore through an public issue of 43.83 lakh shares at a share price of Rs 226 per share.

The New Delhi-based company had mobilised Rs 28.23 crore via anchor book on November 21, out of the Rs 99-crore IPO. Aarth AIF, Bengal Finance, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital, Negen Undiscovered Value Fund, and Shine Star Build Cap bought 12.49 lakh shares at the upper price band.

The company specialises in delivering customised software and software-enabled systems that control mission-critical defence applications for military and security apparatus. It will use the IPO funds to purchase fixed assets (both hardware and software) for its existing operations and the proposed set up of an Experience Centre at Dubai.