ATC Energies System, a well-organized company engaged in the development and manufacturing of customized Li-Ion battery packs, has garnered significant attention with its upcoming IPO. The company is ranked among Asia's top 10 brands for its design and production capacity. The ATC Energies System IPO is set to raise ₹63.76 Crores, consisting of a Fresh Issue of 43.23 lakh shares worth ₹51.01 Crores and an Offer for Sale (OFS) of 10.80 lakh shares totaling ₹12.74 Crores.

IPO Subscription Details

The subscription period for the ATC Energies System IPO opens on March 25, 2025, and will close on March 27, 2025. The allotment date is expected to be finalized on March 28, 2025, with shares tentatively listed on the NSE SME on April 2, 2025.

The price band for the IPO has been set between ₹111 and ₹118 per share, and the lot size is 1,200 shares. Retail investors are required to invest a minimum of ₹1,41,600, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,83,200 for 2 lots (2,400 shares). The Market Capitalisation at the upper IPO price of ₹118 per share is ₹240.58 Crores.

ATC Energies System IPO Subscription Status

As of 10:30 AM on March 25, 2025, the live subscription status shows the IPO is subscribed 0.05 times on its first day of the subscription period. The status is updated in real-time and can be checked on the NSE website.

Anchor Investors Report

ATC Energies System has raised ₹10.88 Crores from anchor investors by allocating 9,22,800 equity shares at ₹118 per share. These shares were allocated as part of the Qualified Institutional Buyers (QIBs) portion.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the ATC Energies System IPO is currently ₹0 based on the company's financial performance. It’s important to note that no real trading is conducted on the basis of GMP, and its value depends on the demand-supply dynamic in the unorganized market, which should not be relied upon for price discovery before listing.

IPO Allotment Process

The ATC Energies System IPO allotment date is scheduled for March 28, 2025. Investors can check their allotment status by visiting the registrar's website. Here's how you can check:

• Navigate to the IPO allotment status page.

• Select ATC Energies System Limited from the dropdown list.

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

• Submit the details to check the allotment status.

Use of IPO Proceeds

The net proceeds from the IPO will be utilized as follows:

1. ₹952.83 Lakhs for repayment/pre-payment of borrowings related to the purchase of the Noida factory.

2. ₹672.16 Lakhs for capital expenditure on refurbishment, civil, and upgradation works at the Noida factory.

3. ₹746.88 Lakhs for IT upgradation at the Noida factory, Vasai factory, and registered office.

4. ₹950.00 Lakhs for working capital requirements.

5. The remaining funds will be used for general corporate purposes.

ATC Energies System Financial Overview

For the fiscal year ending September 30, 2024, the company reported revenues from operations of ₹2,249.41 Lakhs, an increase from ₹3,648.30 Lakhs in FY22. The EBITDA for FY24 was ₹825.42 Lakhs, indicating a steady increase from the previous year. The Profit After Tax (PAT) for FY24 stood at ₹577.15 Lakhs.

The company’s pre-issue earnings per share (EPS) is ₹6.78, with a post-issue EPS of ₹5.34 for FY24. The Price-to-Earnings (P/E) ratio of 17.40x for the pre-issue and 22.09x for the post-issue compare favorably with the industry P/E of 31x, suggesting the IPO is reasonably priced.

The Return on Capital Employed (ROCE) for FY24 is 42.66%, while the Return on Equity (ROE) stands at 39.38%, highlighting strong profitability metrics.

Recommendation

While the ATC Energies System IPO shows a promising financial track record and good growth potential, the Grey Market Premium currently reflects no listing gains. Given the company's stable financial performance and fair pricing, investors may want to avoid this IPO for short-term listing gains. However, for long-term investors, this IPO presents a decent opportunity to invest in a growing company in the electric vehicle and battery manufacturing sector.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Identixweb Limited,Retaggio Industries Limited,Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited,Desco Infratech Limited,Rapid Fleet Management Services, Active Infrastructures Limited.

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