In a landmark regulatory clampdown, the Bombay Stock Exchange (BSE) has rejected Jetking Infotrain’s application for listing its preferential issue shares, primarily because the IT training firm planned to channel 60% of the raised funds into virtual digital assets, mainly Bitcoin. Announced on September 24, 2025, this decision—marking the first explicit denial of a listing over crypto treasury plans—highlights India’s cautious stance on corporate cryptocurrency adoption, even as retail trading booms. Jetking, which sought to raise over ₹6 crore through 3.96 lakh equity shares at ₹154 each, now faces a 10% stock plunge and is mulling an appeal to the Securities Appellate Tribunal (SAT).
For investors eyeing crypto-tied stocks, IT firms diversifying into digital assets, and policymakers shaping VDA (Virtual Digital Assets) rules, this rejection underscores a key divide: internal profits can fund crypto, but public money cannot due to volatility concerns. As India’s $6 billion crypto market matures, Jetking’s setback could chill similar strategies. Let’s unpack the details, regulatory backdrop, and road ahead.
The Rejection Details: Speculative Nature Cited as Dealbreaker
Jetking’s journey hit a wall despite early nods: In-principle approval from BSE on May 9, 2025, board sign-off on May 23, and filing on June 10. But BSE returned the application, stating: “The rationale for the issue is investment in virtual digital assets is of speculative nature.” The company had already allotted shares and partially deployed funds into crypto, blending its IT training ops with a Bitcoin treasury play.
Breakdown of the issue:
| Aspect | Details | Impact of Rejection |
|---|---|---|
| Issue Size | ₹6.1 crore via 3,96,156 shares at ₹154 each | Funds partially used; listing blocked |
| Crypto Allocation | 60% (~₹3.66 crore) for Bitcoin/VDAs | Deemed “speculative”; no public fund use allowed |
| Timeline | In-principle: May 9; Filed: June 10; Rejected: Sep 24 | 4-month delay; stock down 10% to ₹241.65 |
| Next Steps | Appeal to SAT; evaluate options | Could set precedent for crypto IPOs |
Joint MD & CFO Siddharth Bharwani called the approach “inconsistent,” noting the Supreme Court’s 2020 ruling that crypto isn’t illegal but needs regulation. BSE consulted regulators during review, revising norms to bar such uses amid policy flux.
Regulatory Context: India’s Crypto Caution Amid Global Shifts
India’s stance permits companies to buy crypto with surplus cash but bans IPO proceeds for VDAs, viewing them as high-risk without clear guidelines. This echoes SEBI’s oversight on speculative investments, protecting retail investors from volatility—Bitcoin’s 50%+ swings in 2025 alone. While retail adoption leads globally (millions trading via WazirX, CoinDCX), corporate treasuries remain off-limits for public raises, per current norms.
This isn’t isolated: Similar scrutiny hit other firms with crypto exposure, but Jetking’s is the first outright rejection. As the government eyes VDA integration into securities laws, experts anticipate clarity by 2026, potentially unlocking Bitcoin strategies like MicroStrategy’s (holding $10B+ in BTC).
Market and Industry Ripples: Investor Jitters and Broader Caution
Jetking’s shares tumbled nearly 10% in five days post-rejection, from ₹268.40 to ₹241.65, eroding confidence in crypto-diversified plays. For the sector:
- IT Firms: Chills Bitcoin treasury experiments; peers may stick to traditional diversification.
- Crypto Market: Signals regulatory hurdles for mainstream adoption, despite $6B+ volumes.
- Investors: Heightened risk for small-cap IPOs with unconventional uses; watch SAT appeal for precedents.
Bitcoin enthusiasts on X, like Sapna Singh, decry the “anti-crypto” vibe, while analysts see it as protective amid 2025’s market dips.
Conclusion: Jetking’s Setback Spotlights India’s Crypto Crossroads
BSE’s rejection of Jetking Infotrain’s IPO for crypto investments is a wake-up call for ambitious treasuries in a regulation-shy landscape. While Jetking eyes an appeal, this could spur faster VDA clarity—or more roadblocks. As India balances innovation with investor safety, the crypto-corporate bridge remains shaky. hokanews
