Twinkle Papers withdraws SME IPO over undisclosed NCLT proceedings
The company and its merchant banker told BSE on June 30 the IPO – which opened June 29 – was cancelled because NCLT proceedings were omitted from both offer documents. Application funds will be unblocked.
What changed
- BSE notified the withdrawal of Twinkle Papers' SME IPO as of June 30, 2026.
- The IPO, which opened June 29, was cancelled due to non-disclosure of NCLT proceedings in the DRHP and RHP.
- Application funds will be unblocked; no further action required by investors.
The read
Twinkle Papers' SME IPO lasted barely a day. Opened June 29, withdrawn June 30, after the merchant banker and company admitted they had failed to disclose proceedings before the NCLT in both the DRHP and RHP. The omission, labelled 'inadvertent', is a material compliance lapse under SEBI's ICDR regulations. Bidders will have their ASBA unblocked or funds refunded. The deeper cost is credibility: the company now has to refile if it wants to come back, and the merchant banker will have to explain how the disclosure gap survived due diligence. SEBI does not let material legal proceedings slip without consequences.
Primary source: official circular (PDF)