Ace Alpha Tech Limited, a technology-driven company specialising in defence and aerospace solutions, has announced its upcoming initial public offering (IPO), opening for subscription from June 26 to June 28, 2025. The company plans to raise ₹25.5 crore through this book-built issue, which will be listed on NSE SME.

IPO Details

• IPO Opening Date: June 26, 2025

• IPO Closing Date: June 28, 2025

• Price Band: ₹83 to ₹87 per share

• Issue Size: ₹25.5 crore (30 lakh fresh equity shares)

• Lot Size: 1,600 shares

• Minimum Retail Investment: ₹1,39,200

• Listing Exchange: NSE SME

• Tentative Listing Date: July 3, 2025

• Registrar: Bigshare Services Pvt Ltd

• Lead Manager: Interactive Financial Services Ltd

• Market Maker: Spread X Securities

Company Overview

Ace Alpha Tech Limited was incorporated in 2014 and is engaged in designing, developing, and supplying high-precision electronic and electro-mechanical solutions for use in defence, aerospace, and industrial sectors. The company provides embedded systems, communication modules, sensors, and data loggers. Its clients include major Indian defence public sector undertakings and private sector giants.

The company boasts in-house R&D capabilities and claims adherence to stringent quality standards essential for defence and aerospace products.

Financial Performance

The company has shown steady growth in revenues and profits. It has also maintained healthy margins, especially for an SME player in the defence-tech space.

• Pre-Issue EPS (FY24): ₹5.83

• Post-Issue EPS (FY24): ₹3.89

• P/E Ratio (at upper band ₹87): ~22.36x

• Industry Average P/E: ~30x (for defence-tech peers)

Objects of the Issue

The net proceeds from the IPO will be used for:

• Setting up of new facility with modern equipment

• Working capital requirements

• General corporate purposes

Strengths

• Operates in the high-barrier, niche defence & aerospace segment.

• Strong client relationships with Indian defence PSUs and OEMs.

• In-house design and development capabilities with IP rights.

• Asset-light and scalable business model.

• Consistent financial growth with healthy profitability margins.

Risks

• Client concentration risk: Significant revenues from a few defence PSUs.

• Regulatory dependency and approval cycles in defence procurement.

• Relatively small IPO size, could mean low liquidity post-listing.

• Competition from larger, established defence-tech firms.

Grey Market Premium (GMP)

• As of latest updates, the GMP stands at ₹10, suggesting listing gains of ~11.5% over the upper band.

IPO Verdict

Based on its financial performance, valuation, and sector outlook, the Ace Alpha Tech IPO seems fairly priced compared to its peers. The defence sector continues to receive robust government support through procurement and indigenous development push under Atmanirbhar Bharat.

Investors looking for listing gains may consider applying, though low liquidity and SME nature of the stock warrant caution. For long-term investors, a wait-and-watch approach post listing may be more prudent.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers.

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