C2C Advanced Systems on Tuesday made a strong listing at NSE-Emerge platform by gaining almost 100 per cent. The stock, after opening at ₹429.40 against the IPO price of ₹226, closed at ₹450.85 (upper circuit) — a gain of 99.50 per cent over the IPO price.
The IPO, that caught the attention for wrong reasons, sustained overwhelming investor interest. The Bengaluru-based company has fixed the IPO price at ₹226, at the upper end of the price band.
After the three-day IPO closed on November 26, the stock was supposed to be listed last Friday. However, the listing was delayed as NSE/SEBI asked the company to provide subscribers the withdrawal option till Thursday due to some alleged discrepancies in its financial statement.
The NSE had appointed an independent auditor to verify the accounts and the listing was allowed after the auditor report was received.
Meanwhile, the Bengaluru-based company’s IPO was subscribed over 100 times overall, despite regulatory blues. However, using the withdrawal option, some investors, mainly from the retail segment, had opted out from the issue.
IPO proceeds
C2C Advanced, a provider of defence electronics solutions, came out with a IPO for ₹99.1 crore. As part of the IPO, the company raised ₹28.23 crore from anchor investors. It has allotted 12.49 lakh shares at ₹226 each to eight anchor investors — Aarth AIF, Bengal Finance & Investment, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund and Shine Star Build Cap Fund.
The company proposes to use the proceeds of the net issue to fund capital expenditure, including the purchase of fixed assets (both hardware and software) for its existing operations and Dubai Centre (₹14.73 crore), Fit-outs at its existing facilities (₹4.58 crore), the security deposit for a new premises at Bengaluru (₹1.60 crore), and working capital needs (₹46 crore).
