The ATC Energies System IPO will open for subscription from March 25, 2025, to March 27, 2025. This IPO will allow the company to raise funds for various purposes, including repayment of loans and capital expenditure to upgrade its Noida and Vasai factories. The allotment date is expected to be March 28, 2025, with shares being listed on April 2, 2025 on the NSE SME platform.

The price band for the IPO is yet to be announced, and Indorient Financial Services Limited is the book running lead manager. KFIN Technologies Limited is the registrar for the issue, and Alacrity Securities Limited will act as the Market Maker.

The company is involved in the development and manufacturing of customized Li-Ion Battery Packs and products across various grades, ranking among the top 10 brands in Asia for its production capacity and design capabilities.

As of March 20, 2025, the Grey Market Premium (GMP) of the ATC Energies System IPO is ₹0, indicating that there are no expected listing gains as of now. The GMP depends on unorganized market demand and should not be used to predict listing prices.

The subscription status will be updated once the IPO opens on March 25, 2025, and investors can check the allotment status after March 28, 2025, by visiting the registrar’s website and entering the application number, PAN, or DP Client ID.

The objectives of the IPO include:

1. ₹952.83 Lakhs for repayment of loans for the Noida factory purchase.
2. ₹672.16 Lakhs for refurbishment and upgradation of the Noida factory.
3. ₹746.88 Lakhs for IT upgradation at the Noida and Vasai factories.
4. ₹950.00 Lakhs for working capital requirements.
5. General corporate purposes.

Financial Performance: The company’s revenues for the period ending Sep 30, 2024 stood at ₹2,249.41 Lakh, with an EBITDA of ₹825.42 Lakh and Profit After Tax (PAT) of ₹577.15 Lakh. These results indicate solid financial performance with a steady growth trajectory.

For FY24, the company’s pre-issue EPS is ₹6.78, with a post-issue EPS of ₹5.34, and an annualized EPS of ₹7.18. The P/E ratio is fairly priced, with a ROCE of 42.66% and a ROE of 39.38%, which reflects strong returns on capital and equity.

IPO Review and Conclusion: While the GMP indicates no immediate listing gains, the company’s strong financials, with high ROCE and ROE, suggest that the ATC Energies System IPO is reasonably priced. Investors should consider the long-term growth potential in the Li-Ion battery sector, as the company is well-positioned within the top 10 brands in Asia. However, with a ₹0 GMP and no listing gains expected, this IPO may not be ideal for short-term investors looking for quick returns.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Rapid Fleet Management Services, Active Infrastructures Limited,Grand Continental Hotels.

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