The BSE stock exchange has suspended the planned SME initial public offering (IPO) of Solar91 Cleantech just one day before the launch. The public offering was originally scheduled to be open for registration from December 24 to December 27. This action comes after the stock company received some complaints about the company’s management on social media.
This development comes amid growing financial awareness among netizens, as a section of users have raised several questions about the proposed IPO.
Bonus learned to seek clarity from the company about key features when it received detailed feedback from several users.
Founded by a group of IIT graduates in 2015, Jaipur-headquartered Solar91 Cleantech is a solar plant installation company that specializes in providing full-cycle engineering, procurement and construction (EPC) services to the global renewable space.
Solar91 Cleantech aspires to be an independent energy producer. Its EPC order book stands at 6.6 MW.
According to the red herring prospectus (RHP), the company has no other way to arrange the money it needs in case its IPO is not registered. Also listed this as a risk to RHP.
According to Zee Business research, an IPO would not be able to finance the establishment of power plants as the power generation business requires a lot of capital.
Solar91 Cleantech’s IPO, scheduled to conclude on December 27, involves a fresh issue of shares worth up to Rs 106 crore.
Analysts at Zee Business stressed that the size of the IPO itself would not be sufficient to meet this requirement as stated by the company, and raised concerns about the sudden increase of 2.4 times in its asking price (from Rs 24,430 on May 1 to Rs 59,453 on May. 31) before of the offer.
SME IPO पर BSE का कडा Action – खुलने से पहले SME IPO पर रोक
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Solar91 Cleantech IPO – 24-27 Last days
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#SMEIPO #IPOToInvest #IPOs @AshishZBiz #Solar91Cleantech… pic.twitter.com/YZO89m8rZR
— Zee Business (@ZeeBusiness) December 26, 2024
ALSO READ: Trafiksol SME IPO: SEBI orders refund of interest to investors within 1 week
It is not the first time that the company has been banned from the primary market in recent times.
This month, capital market regulator SEBI ordered a full refund and any accrued interest to investors who participated and won a stake in Trafiksol ITS Technologies’ SME IPO registered in Noida in November. Earlier, the market watchdog suspended the listing of Trafiksol ITS Technologies shares on BSE’s SME platform when it received some complaints from investors.
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