C2C Advanced Systems IPO listing to be postponed as SEBI mandates audit after investor's complaint: Report

The Securities and Exchange Board of India (SEBI) mandated the independent audit following a complaint from an investor, according to the report. The C2C has reportedly been directed to allow investors, including anchor investors, to withdraw their applications before the allocation of shares.

The IPO, valued at ₹99 crore, was expected to hit the market on November 29, with a price band of ₹214-226 per share. However, the company's listing on the NSE's SME platform, Emerge, will now be delayed pending the audit report. The offering comprises a fresh issue of 43.83 lakh equity shares, with a minimum bid size of 600 shares.

Proceeds from the IPO were earmarked for capital expenditure, including upgrades to its Bengaluru experience centre and the establishment of a new centre in Dubai. The funds were also intended to support working capital needs and general corporate purposes.

C2C Advanced Systems, which serves the defence, homeland security, and aerospace sectors, counts the Indian Armed Forces, DRDO, and international clients such as Thales and Dassault Systemes among its customers. The Bengaluru-based company posted revenue of ₹43.22 crore and a profit of ₹9.73 crore for the September quarter.

As part of the regulatory notice, the NSE will establish a monitoring agency to oversee the utilisation of funds post-listing, reported Moneycontrol. No new subscriptions will be allowed until the audit requirements are fulfilled, according to the report.