Shares of TBO Tek Ltd declined nearly 2% in early trade on Tuesday, slipping 1.75% to ₹1,052.55 on the NSE, following a regulatory setback. The drop came after the company informed stock exchanges that the Reserve Bank of India (RBI) has rejected its application for post-facto approval under the Foreign Exchange Management Act (FEMA), 1999.
In an official disclosure dated April 8, the company stated that the RBI, through a letter dated April 7, refused to grant approval for receiving payments amounting to ₹712.25 million (₹71.22 crore) through third-party channels or a company registered in India on behalf of a person residing outside India. This payment structure had been previously disclosed in TBO Tek’s IPO offer documents and FY24 annual report as a potential regulatory concern.
TBO Tek said it is currently evaluating available options and is consulting with legal and financial advisors. The company also noted it will seek further guidance from the RBI and will ensure full compliance with applicable laws moving forward.
The stock had previously closed at ₹1,071.30 and opened Tuesday’s session with selling pressure, with the day’s range fluctuating between ₹1,047.35 and ₹1,078.90. TBO Tek’s market cap stood at ₹11,158 crore at the time of this update.
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