C2C Advanced Systems entered the stock market with a stellar debut, reflecting robust investor demand for the defense electronics solutions provider.
The company’s shares listed at Rs 429.40 on the NSE SME platform, showcasing a 90% premium over its issue price of Rs 226 per share.
This performance underscores significant confidence in the company’s prospects, driven by high subscription rates during its IPO.
Market Performance on Listing Day
C2C Advanced Systems shares opened at their maximum permissible price due to NSE SME rules, which cap IPO listing gains at 90%.
This debut aligned closely with its GMP of 106% before listing, signaling strong market expectations.
IPO Subscription Figures
The initial public offering, open from November 22 to November 26, saw extraordinary demand across investor categories. The issue was subscribed 125.35 times overall:
- Retail Investors: Subscribed 132.73 times
- Qualified Institutional Buyers (QIBs): Subscribed 31.61 times
- Non-Institutional Investors (NIIs): Subscribed 233.13 times
These numbers highlight substantial interest, particularly among high-net-worth individuals.
IPO Details
The IPO was priced between Rs 214 and Rs 226 per share, raising Rs 99.07 crore at the upper end of the price band. The offering included 43.84 lakh equity shares, all newly issued. The proceeds are intended to fund:
- Capital expenditure for acquiring fixed assets.
- Fit-outs for new premises.
- Security deposits for a Bengaluru facility.
- Working capital requirements.
- General corporate expenses.
Regulatory Oversight and Investor Caution
The listing faced delays due to regulatory concerns raised by the Securities and Exchange Board of India (SEBI).
SEBI directed C2C Advanced Systems to appoint independent auditors to review its financial accounts and mandated the NSE to establish a monitoring agency to oversee the utilization of IPO funds.
Despite the strong demand, over 3.72 lakh applications worth Rs 27 crore were withdrawn following SEBI’s intervention. This reflects a cautious investor approach to regulatory scrutiny, even in high-demand IPOs.
SEBI’s Role in SME IPO Monitoring
C2C Advanced Systems’ listing highlights SEBI’s increasing oversight of SME IPOs to ensure compliance and transparency.
Recently, SEBI intervened in another SME IPO, halting Trafiksol ITS Technologies’ listing over discrepancies in its Draft Red Herring Prospectus (DRHP).
These actions underscore SEBI’s focus on maintaining quality and safeguarding investor interests in the SME segment.
Grey Market Activity and Premium Listing
Ahead of its listing, C2C Advanced Systems’ shares were trading at a premium of Rs 240 in the grey market. Despite regulatory challenges, the shares opened at a 90% premium, indicating robust confidence in the company’s growth potential, particularly in the defense and aerospace sectors.
IPO Management and Registrar
Mark Corporate Advisors Private Limited and Beeline Capital Advisors Pvt Ltd managed the IPO, with Link Intime India Private Ltd acting as the registrar.
C2C Advanced Systems’ remarkable market debut reflects growing investor confidence in India’s defense technology sector.
The listing performance and high subscription rates underscores the company’s potential for sustained growth and investor interest in the SME space.
Disclaimer – This article is for informational purposes only and not intended as financial or investment advice. MarketScope Daily does not guarantee the accuracy or completeness of the information provided. Readers should conduct their own research or consult a financial advisor before making investment decisions. Market investments involve risks, including potential loss. MarketScope Daily is not liable for any financial decisions made based on this article.
