Ace Alpha Tech Limited, formerly known as DM Prime Square Research & Analytics Private Limited, is launching its Initial Public Offering (IPO) on June 26, 2025. The IPO will be open for subscription until June 30, 2025, and seeks to raise ₹49.97 crore through a fresh issue of ₹37.96 crore and an Offer for Sale (OFS) of ₹12 crore.

Company Overview:

Ace Alpha Tech provides professional-grade software solutions for trading, risk management, and investment management to a wide range of clients — from retail traders to large institutions. The company’s offerings include:

• Trading system development

• Algorithmic trading platforms

• Risk analytics tools

• Custom strategy support

With customizable solutions and a tech-driven approach, Ace Alpha enables its users to enhance profits, reduce risks, and automate financial operations.

Promoter & Leadership:

Mr. Gaurav Sharma, a seasoned entrepreneur with 13+ years of industry experience, leads the company as its Chairman, Managing Director, and CFO. His strong technical and managerial vision has guided the company’s rapid growth in recent years.

IPO Details:

Market Cap & Valuation Metrics:

• Post-Issue Market Cap (at ₹107/share): ₹187.87 Crores

• GMP (as on June 23, 2025): ₹13

• Expected Listing Price: ₹120

• Estimated Listing Gain: 12.14%

Financial Performance Snapshot:

*As of Dec 31, 2024 (unaudited or annualized where applicable)

Valuation Metrics:

• Pre-Issue P/E: 13.48x

• Post-Issue P/E: 17.63x

• Industry P/E: ~23x

• Annualised P/E (FY25 EPS of ₹6.43): 16.64x

• ROCE: 109.31%

• ROE: 82.00%

• RoNW: 47.91%

The strong return ratios suggest that the company is highly efficient in capital utilization and has superior profitability metrics compared to many listed peers.

IPO Strengths:

✅ Explosive revenue and profit growth over the last 3 years
✅ High ROE and ROCE indicate capital efficiency and business quality
✅ Tech-first model that’s scalable across geographies
✅ Diverse clientele including proprietary desks and institutions

Risks to Consider:

⚠️ SME IPO segment may face lower liquidity post-listing
⚠️ Heavy dependency on founder-led management
⚠️ Relatively new entrant in enterprise-scale platforms

Grey Market Premium (GMP) & Listing Outlook:

The GMP for Ace Alpha Tech IPO is ₹13, indicating a listing price of ₹120 (₹107 + ₹13). This reflects an expected listing gain of ~12.14%, which is reasonable but not overly bullish.

Conclusion:

Ace Alpha Tech has delivered strong financial growth, boasts excellent profitability, and is operating in a technology-driven niche with rising demand. The IPO valuation is fair compared to industry peers, and GMP trends indicate moderate investor interest.

📌 Recommendation:
🟡 Risk-Tolerant Investors may APPLY for listing gains.

Disclaimer

This article is for educational and informational purposes only. It does not constitute investment advice. IPO investments are subject to market risks, and the Grey Market Premium is not officially regulated. Investors are advised to consult a SEBI-registered financial advisor before investing.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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