Every day, IPOs are listed in the stock market and investors invest a lot of money, but today, the IPO of a small and medium-sized enterprise was stopped, causing investors’ funds to be stuck. The stock exchange BSE has stopped the listing. Before the listing, the GMP of this IPO was 135%, which has now become “0”.
In fact, Trafiksol ITS Technologies Limited was scheduled to be listed on the BSE today (Tuesday), but after receiving complaints at the last minute, the BSE stopped the listing. Now, the listing of this IPO has not been completed until the company answers all the questions to the BSE. In addition, the company has not received permission to use the funds raised from the IPO.
BSE prohibits the use of funds
Out of caution for small and medium enterprises, BSE took the last-minute step of disabling the utilisation of funds. The amount arising from the issue will be kept in an escrow account till the complaints are resolved satisfactorily. The listing has been postponed to the next date till the issue is resolved.
There are signs of huge profits
On the other hand, investors initially expected to get a big payout from TrafficSol ITS Technologies, which received a 135% premium on its offering price in the grey market, but that premium is now zero.
Investor funds are trapped
Those who invested money in this IPO and got a lot, now have their money stuck until the listing. The listing date is not clear, but it is believed that its listing will be delayed for some time.
When did this IPO come?
TrafficSol ITS Technologies raised a total of Rs 4,487 crore through its IPO, which was open for bidding from September 10 to September 12. The issue was entirely of 6.41 million new shares at a price of Rs 65-70 per share in lots of 2,000. This means that retail investors had to invest Rs 1.4 lakh.
Investors responded strongly
During the three-day bidding process, the issue was subscribed 345.65 times and the retail portion was subscribed 317.66 times. The NII portion was booked nearly 700 times, while the QIB portion received 129.22 bids. The company has raised a total of Rs 1,275 crore from anchor investors.
What does the company do?
The Noida-based company provides traffic management solutions for highways in India. Ekadrisht Capital is the sole bookrunning lead manager for the Trafficsol ITS Technologies IPO, while Mashitala Securities is the registrar for the issue. The market maker for the Trafficsol ITS Technologies IPO is SS Corporate Securities.
(Note- Before investing in any IPO, gather complete information about the company.)
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