Sebi cancels Trafiksol IPO, orders refund of investor money

Mumbai: Sebi cancels IPO of the SME entity Trafiksol ITS Technologies, and the Securities and Exchange Board of India has also asked to refund the money of the investors allotted shared in their IPO. BSE and the bankers are coordinating to take care of the refund process, which must be accomplished within a week from the order date, with the earned interest.

Trafiksol IPO news

A complaint was received by Sebi before the listing of the shares, which mentioned the purchase of software from a vendor with questionable credentials. It was found by the Sebi investigation Trafiksol that the vendor was a shell entity and the company tried to cover up while questioned about the vendor’s credentials. The Sebi order aims to safeguard the interests of the investors by assuring they get their money back.

The order said, ‘the finding about the company’s involvement in covering-up has emerged on the fact that it can be logically assumed that the company’s MD, considering his connection with this sector, at the very least, was informed that the TPV directors’ profile that was submitted to BSE, was deceptive. Hence, the defense of the company- that it has forwarded the documents to BSE which TPV provided without authenticity verification- should be rejected.

Trafiksol, which offers traffic and toll management solutions through technology, had submitted a draft red herring prospectus for an IPO on the SME platform, offering 64.1 lakh equity shares per share at Rs 66-70, scheduled for 17th September 2024, was ceased because of the complaint.

The order said, ‘It is relevant to note that other findings of the investigation are yet to be adjudged. So, notice submitted that IPO may be allowed to move forward subject to the use of proceeds being observed by an agency employed by BSE or Sebi, can’t be considered.