SEBI Halts C2C Advanced Systems IPO Listing Amid Audit Review

C2C Advanced Systems, known for launching one of this year’s biggest SME IPOs, has hit pause on its listing after the market regulator, SEBI, stepped in. The company is also giving investors a chance to withdraw their IPO applications.

Here’s what they shared in a notice: “As per SEBI’s instructions, all investors—except anchor investors—can withdraw their bids for C2C Advanced Systems’ SME IPO between November 26 and November 28, across all categories.”

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The withdrawal windows are as follows:

• For QIB and NII investors: November 26 until 4:00 PM.
• For retail investors: November 26 until 5:00 PM.
• For all categories: November 27 and 28, from 10:00 AM to 5:00 PM.

Before SEBI’s intervention, the IPO was gaining massive traction, with subscriptions reaching nearly 96 times the initial offering. C2C Advanced Systems IPO, priced between ₹214 and ₹226 per share, was originally scheduled to close this Tuesday.

So, why the delay? SEBI has asked the company to appoint independent auditors to review its financial accounts and submit a report. As a result, the IPO listing is now postponed by 2-3 days, with a new listing date expected on or before December 3. Share allotments are set to be finalised by November 29.

To ensure everything stays on track, the NSE will also create a monitoring agency to oversee how funds are allocated post-listing.

Interestingly, this is the second time this year SEBI has flagged an SME IPO. Earlier, it halted Trafiksol ITS Technologies’ listing due to concerns over potential misuse of IPO proceeds.

C2C Advanced Systems specializes in cutting-edge solutions for the defence, homeland security, and aerospace sectors. It provides custom systems to defence forces, including advanced weapons and sensor integration. The company also develops command and control platforms for industrial use, focusing on supply chain and logistics virtualisation.

Their expertise is in system integration, architecture, software development, and testing. Notably, they delivered a combat management system to the Royal Malaysian Navy.

In FY24, the company reported revenues of ₹41 crore, EBITDA of ₹18 crore, and a PAT of ₹12 crore.