Trafiksol SME IPO: SEBI gives firm 1 week to return investors’ money with interest
In what may be a first-of-its-kind move to protect investors, capital markets regulator Securities and Exchange Board of India (SEBI) on Tuesday ordered full refunds and any accrued interest to investors who participated and won shares in Noida-listed Trafiksol. ITS Technologies’ initial public offering (IPO) on the SME platform last month. The development comes after SEBI suspended the listing of shares of Trafiksol ITS Technologies on BSE’s SME stock exchange last month when it received some complaints from investors.
On Tuesday, SEBI directed that investors allotted shares under the IPO will be refunded the money and any accrued interest within one week. A total of Rs 44.9 crore was raised in the IPO.
The SME IPO was available for registration from September 10 to September 12, with the potential allocation ending on September 13.
The market regulator stated that the stock exchange, BSE, and the banker will be responsible for overseeing the refund process.
In October, as per its previous interim order, SEBI ordered that the funds involved in the IPO be held in an escrow account until the investigation is completed. The market watchdog ordered an inquiry into the matter after the Noida-based company had already completed its IPO.
Zee Business first reported on this issue on September 16.
Trafiksol ITS Technologies is involved in providing intelligent transportation systems and innovative solutions in areas such as traffic management and toll management.
In May, the company filed its DRHP with BSE to launch an IPO involving a fresh issue of 64.1 lakh equity shares on the SME exchange’s platform.
The issue was offered at a price of Rs 66-70 per share.
The Trafiksol ITS Technologies IPO, which was opened for registration from September 10 to September 12, was subscribed 345.7 times, with an amazing response from all categories of investors.
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