Trafiksol SME IPO: SEBI orders refunds to investors with interest within 1 week

In a possibly first-of-its-kind action to protect investors, capital market regulator Securities and Exchange Board of India (SEBI) on Tuesday ordered a full refund along with any accumulated interest to investors who participated and won allotment in Noida-registered Trafiksol ITS Technologies' initial public offer (IPO) in the SME platform last month. The development comes after SEBI halted the listing of Trafiksol ITS Technologies shares on stock exchange BSE's SME platform last month upon receiving certain investor complaints. 

On Tuesday, SEBI ordered that investors who are allotted shares under the IPO will be paid refunds along with any accumulated interest within one week. A sum of Rs 44.9 crore was raised in the IPO.

The SME IPO was available for subscription from September 10 to September 12, the allotment for which was likely completed on September 13.

The market regulator mentioned that the stock exchange, BSE, and the merchant banker will be responsible for overseeing the refund process. 

In October, in its interim ex-parte order, SEBI ordered the money involved in the IPO to be kept in an escrow account until the completion of investigations. The market watchdog ordered the probe into the matter after the Noida-based company already completed its IPO. 

Zee Business had first reported the issue on September 16.

Trafiksol ITS Technologies is engaged in providing intelligent transportation systems and automation solutions in areas such as traffic management and toll management.

In May, the company filed its DRHP with BSE to launch an IPO comprising fresh issuance of 64.1 lakh equity shares on the exchange’s SME platform.

The issue was offered in a price band of Rs 66-70 per share.

The Trafiksol ITS Technologies IPO, which opened for subscription from September 10 to September 12, was subscribed 345.7 times, with a phenomenal response across investor categories.

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