Ace Alpha Tech Limited, previously known as DM Prime Square Research & Analytics Private Limited, is making headlines with its ₹49.97 crore IPO that garnered overwhelming demand during the subscription period. With a 93.83 times subscription, the IPO has become one of the most sought-after listings on the BSE SME platform in 2025.

Company Profile:

Ace Alpha Tech offers end-to-end technology solutions for trading, investment management, and risk management. Their clientele includes institutions, proprietary trading desks, and retail traders, positioning them as a key enabler of financial market infrastructure. Their proprietary systems aim to optimize returns, reduce risk, and enhance trading efficiency.

Their transformation from a research analytics firm to a full-stack fintech technology provider marks a significant evolution in line with industry needs.

IPO Details:

• IPO Type: Book Built Issue

• Total Issue Size: ₹49.97 Crores

• Fresh Issue: ₹37.96 Crores (35.48 lakh shares)

• Offer for Sale (OFS): ₹12.00 Crores (11.22 lakh shares)

• Price Band: ₹101 to ₹107 per equity share

• Market Capitalization at ₹107: ₹187.87 Crores

• Lot Size: 1,200 shares

• Retail Investment Minimum: ₹1,28,400

• HNI Minimum Investment: ₹2,56,800

• IPO Open Date: June 26, 2025

• IPO Close Date: June 30, 2025

• Allotment Date: July 01, 2025

• Listing Date: July 03, 2025

• Exchange: BSE SME

Lead Manager, Registrar, and Market Maker:

• Lead Manager: Narnolia Financial Services Limited

• Registrar: Skyline Financial Services Private Limited

• Market Maker: SS Corporate Securities Limited

Grey Market Premium (GMP) Insights:

The GMP of ₹13 (as of June 20, 2025) suggests an expected listing price of ₹120, offering a 12.14% listing gain over the upper price band of ₹107. While GMP data in the SME segment is indicative and often speculative, it reflects investor optimism, especially for high-growth tech IPOs like Ace Alpha Tech.

Anchor Investment Boost:

Before the retail phase opened, Ace Alpha Tech successfully raised ₹14.13 Crores from Anchor Investors. It allocated 13,21,200 equity shares at ₹107 per share, affirming the confidence of institutional investors in the company’s future.

IPO Subscription Status – Final Day:

By the end of Day 3 (June 30, 2025), the IPO was subscribed 93.83 times, showcasing massive interest from all investor categories. The breakup of category-wise subscription (to be updated after final data) is expected to show a strong push from QIBs, NIIs, and retail alike.

Use of IPO Proceeds:

Ace Alpha Tech has outlined a clear objective for the utilization of IPO proceeds:

1. ₹12.5 Crores for capital expenditure – likely to fund product enhancement, tech upgrades, and infrastructure scaling.

2. The rest will go towards general corporate purposes and future acquisitions, which are yet to be identified.

This structure points to a growth-oriented and agile capital deployment strategy, often valued in the tech sector.

Financial Performance Review:

Ace Alpha Tech’s financials reflect exponential growth over the past three years. Here’s a breakdown:

Revenue from Operations:

• Dec 31, 2024: ₹1,271.31 Lakh

• FY 2024: ₹1,535.38 Lakh

• FY 2023: ₹494.02 Lakh

• FY 2022: ₹36.16 Lakh

EBITDA:

• Dec 31, 2024: ₹1,169.51 Lakh

• FY 2024: ₹1,427.41 Lakh

• FY 2023: ₹444.55 Lakh

• FY 2022: ₹18.12 Lakh

Profit After Tax (PAT):

• Dec 31, 2024: ₹846.79 Lakh

• FY 2024: ₹1,065.40 Lakh

• FY 2023: ₹332.31 Lakh

• FY 2022: ₹13.45 Lakh

These results show a compound growth in revenue and profit, indicating scalability of the business model.

Valuation Metrics:

• Pre-issue EPS: ₹7.94

• Post-issue EPS: ₹6.07

• Pre-issue P/E: 13.48x

• Post-issue P/E: 17.63x

• Industry P/E: ~23x

• Annualised EPS: ₹6.43

• Annualised P/E: 16.64x

• ROCE (FY24): 109.31%

• ROE (FY24): 82.00%

• RoNW: 47.91%

These numbers suggest that the IPO is reasonably priced, especially when compared to the industry average P/E of 23x. The high ROCE and ROE indicate strong returns on capital and equity, adding to investor appeal.

Promoter Leadership:

Mr. Gaurav Sharma, aged 36, is the Chairman, Managing Director, and CFO of the company. With 13 years of domain experience, he has successfully steered the company’s transformation into a cutting-edge financial technology firm. His strategic direction and operational acumen are key drivers behind the firm's success.

Ace Alpha Tech IPO – Recommendation:

Given the:

• Robust financial growth

• High ROE and ROCE

• Reasonable valuation

• Strong anchor book

• GMP indicating double-digit listing gains

• And record-breaking 93.83x subscription

We recommend "Apply for Listing Gains" — particularly for risk-tolerant investors looking to benefit from short-term momentum in the SME tech space.

However, given that this is an SME IPO, investors must be aware of:

• Low post-listing liquidity

• Higher volatility

• Longer-term uncertainty

Thus, listing gains look promising, but caution is advised for long-term holdings unless future earnings visibility strengthens.

How to Check Allotment:

To check your Ace Alpha Tech IPO allotment status on or after July 01, 2025, follow these steps:

1. Go to the registrar website (Skyline Financial Services).

2. Click on ‘IPO Allotment Status’.

3. Select ‘Ace Alpha Tech Limited IPO’ from the dropdown.

4. Enter your Application No., PAN, or DP Client ID.

5. Click ‘Submit’ to view your allotment status.

Conclusion:

The Ace Alpha Tech IPO stands out among 2025 SME listings for its stellar subscription numbers, reasonable valuation, and solid fundamentals. The ₹13 GMP and overwhelming investor interest reflect strong market confidence.

While listing gains appear likely, long-term investors must evaluate further clarity on:

• Post-IPO growth strategy

• Sustainable earnings

• Execution of acquisition plans

Nonetheless, tech-savvy and high-risk investors looking to capture early-stage opportunities in fintech infrastructure may find Ace Alpha Tech a compelling short-term bet.

Disclaimer:
This content is intended purely for informational and educational purposes and should not be considered financial advice. Investing in IPOs is subject to market risk. Readers should consult a SEBI-registered advisor before making investment decisions. The information is based on publicly available data as of the date of publication and may change without notice.

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