ATC Energies System Limited, a leading manufacturer of customized lithium-ion battery packs, is set to launch its Initial Public Offering (IPO) on March 25, 2025. The book-built issue aims to raise ₹63.76 crore, comprising a fresh issue of 43.23 lakh shares worth ₹51.01 crore and an offer for sale of 10.80 lakh shares totaling ₹12.74 crore.

ATC Energies System IPO Details

• IPO Open Date: March 25, 2025

• IPO Close Date: March 27, 2025

• Allotment Date: March 28, 2025

• Listing Date: April 2, 2025 (Tentative)

• Price Band: ₹111 - ₹118 per share

• Lot Size: 1,200 shares

• Market Capitalisation at Upper Band: ₹240.58 crore

• Minimum Investment for Retail Investors: ₹1,41,600 (1 Lot)

• Minimum Investment for HNIs: ₹2,83,200 (2 Lots)

• Lead Manager: Indorient Financial Services Limited

• Registrar: KFIN Technologies Limited

• Market Maker: Alacrity Securities Limited

ATC Energies System IPO Subscription Status & GMP

The subscription period runs from March 25 to March 27, 2025, with an expected allotment date of March 28, 2025. The Grey Market Premium (GMP) is currently at ₹0, indicating no significant premium in the unofficial market. However, market trends could shift closer to the listing date.

ATC Energies System Anchor Investors & Financials

The company secured ₹10.88 crore from Anchor Investors at ₹118 per share, allocating 9,22,800 equity shares to institutional buyers. Financial highlights:

• Revenue from operations (FY2024): ₹521.03 crore

• EBITDA (FY2024): ₹15.47 crore

• Net Profit (FY2024): ₹10.89 crore

• Pre-issue EPS: ₹6.78 | Post-issue EPS: ₹5.34

• Pre-issue P/E Ratio: 17.40x | Post-issue P/E Ratio: 22.09x

• ROCE: 42.66% | ROE: 39.38%

Use of IPO Proceeds

The funds raised through the IPO will be utilized for:

1. Repayment of Borrowings (₹9.52 crore)

2. Factory Upgradation & Civil Work (₹6.72 crore)

3. IT Infrastructure Enhancements (₹7.46 crore)

4. Working Capital Requirements (₹9.50 crore)

5. General Corporate Purposes

ATC Energies System IPO Investment Analysis

With strong revenue growth and a Return on Capital Employed (ROCE) of 42.66%, ATC Energies System presents a solid business foundation. However, the zero GMP suggests that listing gains may be limited. The company operates in the lithium-ion battery segment, a high-growth industry, but faces competition from established players.

Should You Subscribe?

Given the current GMP trends, investors looking for listing gains should exercise caution. For long-term investors, ATC Energies System’s consistent growth and expansion plans could make it a decent bet.

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