Investor Exodus: C2C Advanced Systems' IPO Stumbles Amid Regulatory Scrutiny

C2C Advanced Systems' Rs 99-crore IPO faces challenges as over 3.72 lakh applications worth Rs 27 crore are retracted due to regulatory concerns. This setback follows Sebi's order for independent audits and NSE's monitoring agency setup. The initial demand for the defence electronics provider's IPO was overwhelming.

The Rs 99-crore initial public offering (IPO) of C2C Advanced Systems has encountered significant obstacles. With regulatory concerns prompting a postponement of the company's listing, over 3.72 lakh applications, valued at Rs 27 crore, were withdrawn.

According to the latest data, this withdrawal was particularly pronounced among individual investors, with 3.57 lakh applications retracted. High-net-worth individuals also adopted a cautious stance, withdrawing over 15,000 applications, while institutional investors withdrew eight applications.

This contrasts sharply with initial investor enthusiasm, which saw demand soar to 125 times the available shares. Following a directive from Sebi, C2C is required to appoint independent auditors, and NSE must establish a monitoring agency to oversee IPO fund utilization, offering investors a withdrawal option.

(With inputs from agencies.)