SME IPO, postpones Solar91 Cleantech issue ! BSE takes action !
Stock exchange BSE on Monday halted a scheduled SME initial public offer (IPO) just one day before launch. The public offer of Solar91 Cleantech, a Jaipur-based solar engineering, procurement and construction (EPC) company, was originally scheduled to open for subscription from December 24 to December 27. The action comes after the stock exchange received certain complaints about the company's management on social media platforms.
The bourse was learned to have sought clarity from the company over important aspects upon receiving detailed feedback from several users.
In a notification issued on December 23, prior to the scheduled bidding by anchor investors, BSE said that the IPO stands "postponed till further notice", citing the need for further examination in view of certain queries "raised by complainants in media".
The development comes amid growing financial awareness online, as some users have raised several questions about the proposed IPO.
The development comes amid growing financial awareness online, as some users have raised several questions about the proposed IPO.
Founded by a group of IIT graduates in 2015, Jaipur-headquartered Solar91 Cleantech is a solar plant installation company specialising in leveraging a full-cycle EPC services in the renewables space worldwide. Solar91 Cleantech aspires to be an independent power producer. Its EPC order book stands at 6.6 MW.
According to its red herring prospectus (RHP), the company has no alternative for arranging the capital it requires in case its IPO is undersubscribed. It has also listed this as a risk in the RHP.
The IPO could not have funded the establishment of power plants as the power production business requires a much larger capital, according to Zee Business research.
Solar91 Cleantech's IPO, scheduled to conclude on December 27, comprised fresh issuance of shares worth up to Rs 106 crore.
Zee Business analysts highlighted that the IPO size itself would have been insufficient to fulfil such a requirement as mentioned by the company, also raising concerns about a sudden spike of 2.4 times in its demanded valuation (from Rs 24,430 on May 1 to Rs 59,453 on May 31) prior to the offer.
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