Ace Alpha Tech Limited, formerly known as DM Prime Square Research & Analytics Private Limited, has launched its Initial Public Offering (IPO), targeting a total issue size of ₹49.97 Crores. The issue comprises a Fresh Issue of 35.48 lakh equity shares amounting to ₹37.96 Crores and an Offer for Sale (OFS) of 11.22 lakh shares, valued at ₹12.00 Crores.

The IPO subscription period opened on June 26, 2025, and will remain open until June 30, 2025. The IPO allotment date is expected to be July 1, 2025, with the company's shares scheduled to list on the BSE SME platform on or around July 3, 2025.

The price band for Ace Alpha Tech IPO has been fixed at ₹101 to ₹107 per share, and the lot size is 1,200 shares. This translates to a minimum investment of ₹1,28,400 for retail investors, while High Net-Worth Individuals (HNIs) need to invest in at least 2 lots, i.e., ₹2,56,800. At the upper end of the price band, the market capitalisation of Ace Alpha Tech will be ₹187.87 Crores.

The IPO is being managed by Narnolia Financial Services Limited as the Book Running Lead Manager, while Skyline Financial Services Private Limited is the Registrar to the issue. SS Corporate Securities Limited will serve as the Market Maker.

Company Overview

Ace Alpha Tech provides an integrated suite of trading systems, risk management platforms, and investment management solutions for institutional clients, proprietary trading desks, and retail investors. The company delivers both advanced technologies and personalized support, helping clients manage risk, improve performance, and streamline operations.

The company, under the leadership of Mr. Gaurav Sharma, who serves as Chairman, Managing Director, Chief Financial Officer, and Promoter, has transformed into a technology-driven financial services provider. Mr. Sharma has 13 years of industry experience and was reappointed on March 30, 2024, for a 5-year term.

Financial Performance

Ace Alpha Tech has demonstrated remarkable financial growth over the past few years. The company’s revenues from operations stood at:

• ₹36.16 Lakh in FY22

• ₹494.02 Lakh in FY23

• ₹1,535.38 Lakh in FY24

• ₹1,271.31 Lakh for the 9 months ended Dec 31, 2024

Similarly, the EBITDA figures were:

• ₹18.12 Lakh in FY22

• ₹444.55 Lakh in FY23

• ₹1,427.41 Lakh in FY24

• ₹1,169.51 Lakh for the period ending Dec 2024

Profit After Tax (PAT) surged from:

• ₹13.45 Lakh in FY22

• ₹332.31 Lakh in FY23

• ₹1,065.40 Lakh in FY24

• ₹846.79 Lakh for the period ending Dec 2024

This trend highlights the company’s rapid business scaling and profitability growth.

Valuation Metrics

Key metrics for FY24 include:

• Pre-Issue EPS: ₹7.94

• Post-Issue EPS: ₹6.07

• Pre-Issue P/E Ratio: 13.48x

• Post-Issue P/E Ratio: 17.63x

• Industry P/E Ratio: 23x

• Annualised EPS: ₹6.43

• Annualised P/E Ratio: 16.64x

• ROCE: 109.31%

• ROE: 82.00%

• RoNW: 47.91%

These strong return ratios and competitive valuation multiples reflect a fairly priced IPO with potential upside.

IPO Objectives

The net proceeds from the Fresh Issue will be used for:

1. ₹1,250.00 Lakhs to meet capital expenditure needs

2. Funding unidentified acquisitions and other general corporate purposes

This suggests the company is aiming to expand its business footprint through strategic acquisitions and infrastructure investment.

Grey Market Premium (GMP) & Listing Prospects

As of June 20, 2025, the Grey Market Premium (GMP) for Ace Alpha Tech IPO stood at ₹13, projecting a listing price of ₹120, which implies a potential gain of 12.14%. However, it’s crucial to note that GMP is unofficial, unregulated, and must only be used as a sentiment indicator.

The Ace Alpha Tech IPO GMP trend as of now is:

Subscription Status Update

On June 27, 2025, at 7:00 PM, the Ace Alpha Tech IPO was subscribed 1.05 times, indicating moderate but positive demand from investors. The final tally is expected to be higher, given the three-day window remaining.

Anchor Investors

Ace Alpha Tech raised ₹14.13 Crores from Anchor Investors by allotting 13,21,200 shares at the upper price band of ₹107. This allocation reflects confidence from institutional investors in the company’s business model and future prospects.

Allotment Status – How to Check

Investors can check the Ace Alpha Tech IPO allotment status from July 1, 2025, by visiting the registrar's website and following these steps:

• Go to the IPO allotment status page

• Choose “Ace Alpha Tech Limited IPO” from the dropdown

• Enter Application Number, PAN, or DP Client ID

• Submit and view your status

This process helps investors quickly confirm their allotment outcome and prepare for the listing on July 3, 2025.

Ace Alpha Tech IPO Review

Ace Alpha Tech IPO appears to offer reasonable listing gains, as reflected by the ₹13 GMP and robust financial growth. Its strong client base, technology-driven model, and impressive return ratios make it a potential choice for listing gains.

Given its high ROCE and ROE, along with relatively fair pricing compared to industry averages, the IPO seems suitable for risk-tolerant investors looking for short-term appreciation and long-term digital transformation potential.

Final Verdict

With a focus on trading and investment technology, a proven leadership team, and a rapidly growing revenue base, Ace Alpha Tech is emerging as a key fintech player in India’s capital markets ecosystem.

While market conditions will ultimately determine the listing outcome, the company’s solid fundamentals, competitive P/E multiples, and positive grey market sentiment make this a potentially rewarding IPO opportunity.

Disclaimer:
The information presented in this article is for educational and informational purposes only and should not be construed as investment advice. Readers are encouraged to conduct their own research and consult SEBI-registered financial advisors before making any investment decisions. Investing in securities is subject to market risks, and IPO allotments are not guaranteed.

The Upcoming IPOs in this week and coming weeks are Travel Food Services, Cryogenic, Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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