ATC Energies System Limited is a well-established company involved in the development and manufacturing of customized, high-quality Li-Ion Battery Packs/products. With a design and production capacity among Asia's top 10 brands, ATC Energies is known for its significant presence in the energy sector. The company is now preparing to go public with an IPO offering.

ATC Energies System IPO Key Details:

The ATC Energies System IPO is a Book Built Issue, amounting to ₹63.76 Crores. The offer consists of a Fresh Issue of 43.23 Lakh shares, worth ₹51.01 Crores, and an Offer for Sale of 10.80 Lakh shares, totaling ₹12.74 Crores. The subscription period for the IPO begins on March 25, 2025, and ends on March 27, 2025. The allotment is expected to be finalized on March 28, 2025, and the shares will be listed on the NSE SME on or about April 2, 2025.

Price Band and Market Capitalization:

The price band for the IPO is set between ₹111 and ₹118 per equity share. At the upper price band of ₹118 per share, the market capitalization of ATC Energies System will be ₹240.58 Crores. The lot size for the IPO is 1,200 shares. Retail investors are required to invest a minimum of ₹1,41,600, and the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots, totaling ₹2,83,200.

Subscription Details:

As of March 27, 2025, at 11:00 AM, the IPO has been subscribed 1.10 times on its final day of subscription. The live subscription status can be checked at NSE.

Grey Market Premium (GMP):

The Grey Market Premium (GMP) for ATC Energies System IPO is currently ₹0, indicating no real trading activity in the grey market. It is important to note that GMP is highly speculative and does not provide a true price discovery mechanism before the listing. The GMP is mentioned only for informational purposes.

Anchor Investors:

ATC Energies System has raised ₹10.88 Crores from anchor investors at a price of ₹118 per share. A total of 9,22,800 equity shares were allocated to these investors. The anchor investor portion is part of the Qualified Institutional Buyers (QIBs) reservation.

Allotment Process:

The ATC Energies System IPO allotment date is set for March 28, 2025. To check your allotment status, follow these steps:

1. Visit the IPO allotment status page on the registrar's website.

2. Select "ATC Energies System IPO" from the dropdown list.

3. Enter your application number, PAN, or DP Client ID.

4. Submit the details to check your allotment status.

Objectives of the IPO:

ATC Energies System intends to use the proceeds from the IPO for the following purposes:

1. Repayment of Loans: ₹952.83 Lakhs will be utilized for repaying loans related to the purchase of the Noida factory, including land and building.

2. Capital Expenditure: ₹672.16 Lakhs for capital expenditures towards refurbishing, civil works, and upgrades at their Noida factory.

3. IT Upgradation: ₹746.88 Lakhs to fund IT infrastructure upgrades at the Noida and Vasai factories, as well as the company's registered office.

4. Working Capital: ₹950.00 Lakhs will be used to meet working capital requirements.

5. General Corporate Purposes: The remaining proceeds will be used for other corporate purposes.

Financial Performance:

The financial performance of ATC Energies System has been strong in recent years. The company recorded revenues of ₹2,249.41 Lakh, ₹5,120.37 Lakh, ₹3,313.54 Lakh, and ₹3,648.30 Lakh for the fiscal years 2024, 2023, and 2022, respectively. The EBITDA for the period ending September 30, 2024, was ₹825.42 Lakh, with a steady profit after tax (PAT) of ₹577.15 Lakh for the same period.

Valuation and Key Metrics:

For FY24, the pre-issue Earnings Per Share (EPS) stands at ₹6.78, with a post-issue EPS of ₹5.34. The pre-issue Price to Earnings (P/E) ratio is 17.40x, while the post-issue P/E ratio is 22.09x. This is favorable compared to the industry P/E ratio of 31x, suggesting the IPO is fairly priced.

IPO Review:

Given the company's solid growth trajectory and steady financial performance, ATC Energies System IPO seems to offer a balanced risk-reward profile. However, the Grey Market Premium shows no significant listing gains, indicating cautious demand for the IPO in the short term. Based on the financial metrics and IPO valuation, we recommend that investors Avoid the ATC Energies System IPO for short-term listing gains. However, for long-term investments, further assessment of the company's future growth in the Li-Ion battery sector is essential.

Investors looking for exposure to the green energy and battery sector may find ATC Energies System a promising company, but they should carefully evaluate the market conditions and the long-term growth potential before making any investment decisions.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited,Identixweb Limited.

The Closed IPOs are  ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited

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