Trafiksol ITS Market Debut Delayed as BSE Raises Concerns; SME IPO Sees Massive 345x Subscription
The scheduled stock market debut of Trafiksol ITS Technologies, originally set for September 17, 2024, on the BSE SME platform, has been postponed. The Bombay Stock Exchange (BSE) announced on X (formerly Twitter) that the listing has been delayed due to unresolved queries raised by the issuer. Investors and market participants have been notified of this delay.
Trafiksol ITS Technologies launched a public offering worth ₹44.8 crore, which was fully a fresh issue of 64 lakh shares. The IPO was open for bidding from September 10 to September 12, 2024, and saw massive demand, with the issue being oversubscribed 345 times. Non-institutional investors showed the most interest, subscribing 699 times the portion allocated to them. Retail investors followed closely, subscribing 317 times their allotted shares, while Qualified Institutional Buyers (QIBs) subscribed 129 times the allocated portion.
The IPO, priced between ₹66-70 per share, attracted significant interest from investors, with bids for 147.45 crore equity shares against the available 42.66 lakh shares.
Ekadrisht Capital Private Limited served as the book-running lead manager, with Maashitla Securities Private Limited as the registrar and Ss Corporate Securities acting as the market maker for the IPO.
Unlike traditional IPOs, SME IPOs are approved directly by the BSE and NSE, bypassing the Securities and Exchange Board of India (SEBI). However, SEBI has recently raised concerns about potential manipulation in the SME market, advising investors to proceed with caution due to the significant price surges these stocks often experience upon listing.
Founded in 2018, Trafiksol ITS Technologies specialises in intelligent transportation systems (ITS) and automation solutions. Their services include software development, consulting, and delivery across various industries, offering products such as operating systems, business applications, and computer games. The company plans to use the IPO proceeds for purchasing software, repaying borrowings, working capital needs, and other corporate purposes.
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