Securities Exchange Board of India (SEBI) has issued interim ex-parte order on Tranfiksol ITS Technologies IPO. The central regulator ordered detailed investigation into IPO disclosures and use of funds. Investigation is expected to completed within 30 days, with cooperation from Trafiksol and its merchant banker.
BSE defers listing of Trafiksol shares
Shares of Trafiksol have been put on hold for listing on BSE due to complaints. In the matter, allegations surface regarding discrepancies in the proposed use of IPO proceeds. Complaints highlight issues with the purchase of software as vendor allegedly lacks capability.
BSE report has revealed that vendor office was closed, raising concerns over due diligence.
SEBI has directed that IPO proceeds to be kept in an interest-bearing escrow account.
Trafiksol ITS Technologies IPO
Trafiksol ITS Technoloiges IPO is a book built issue of Rs 44.87 crores. It was an entirely a fresh issue of 64.1 lakh shares.
Trafkisol ITS Technologies IPO price band was Rs 66 to Rs 70 per share. The minimum lot size for an application was 2000 shares. Ekadrisht Capital Private Limited is the book running lead manager of the Trafiksol ITS Technologies IPO, while Maashitla Securities Private Limited is the registrar for the issue.
Trafiksol ITS Technologies IPO opened for subscription between Tuesday, September 10, 2024 to Thursday, September 12, 2024.
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SEBI cautions on investment in securities listed on SME segment
Ever since, there has been an increase in the number of SME issues as also the investor participation in such offerings. During the last decade, more than ₹14,000 Crores has been raised through this platform, of which around ₹6,000 Crores was raised during FY ‘24.
However, it has come to the notice of SEBI that, post listing, some of the SME companies and / or their promoters have been resorting to certain means that project an unrealistic picture of their operations, SEBI said in a note.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
