ATC Energies System Limited, a well-established company specializing in the development and manufacturing of customized, high-quality Li-Ion battery packs/products, is set to launch its initial public offering (IPO). This IPO will offer both fresh issue and offer-for-sale components, with a combined issue size of ₹63.76 crores. The IPO subscription period opens on March 25, 2025, and closes on March 27, 2025, with the allotment expected to be finalized by March 28, 2025. The shares will be listed on the NSE SME on or around April 2, 2025.

The price band for the ATC Energies System IPO is set between ₹111 and ₹118 per equity share, with a market capitalization of ₹240.58 crores at the upper price band. Investors can apply in multiples of 1,200 shares, with the minimum investment for retail investors standing at ₹1,41,600 and for High-Net-Worth Individuals (HNIs) at ₹2,83,200. The company’s financial performance shows steady growth, with a projected pre-issue Earnings Per Share (EPS) of ₹6.78 and a post-issue EPS of ₹5.34.

As of the second day of the subscription period, the ATC Energies System IPO was subscribed 0.60 times, reflecting a healthy demand. The Grey Market Premium (GMP) currently stands at ₹0, suggesting no significant price movement in the unorganized market. However, the GMP is subject to change based on demand and supply dynamics.

ATC Energies System has already raised ₹10.88 crores from anchor investors, with shares allotted at ₹118 per share. The allocation to anchor investors was based on the upper end of the price band, ensuring strong backing for the IPO. The company aims to utilize the proceeds from this IPO for multiple purposes, including repaying borrowings, funding capital expenditure for factory upgrades, and addressing working capital requirements.

The key objectives of the IPO include repaying ₹952.83 lakh for the purchase of their Noida factory, refurbishing and upgrading their facilities, and enhancing IT infrastructure. The IPO proceeds will also be used to fund general corporate purposes.

The IPO offers an attractive opportunity for investors looking to gain exposure to the growing Li-Ion battery industry, with a company that has solid leadership under Promoter Sandeep Gangabishan Bajoria, who brings 25 years of experience to the business. Despite a relatively low Grey Market Premium, the company’s financial performance and pricing suggest a strong foundation for long-term growth.

For investors interested in checking the allotment status, the allotment will be made available on March 28, 2025. You can easily check the status by visiting the registrar's website and entering your application details.

In conclusion, while the ATC Energies System IPO presents an opportunity for investors looking for exposure to a well-established company in the Li-Ion battery sector, the current GMP trend and financial metrics suggest caution for those seeking immediate listing gains. Based on the company’s performance and the IPO price band, it is advised that investors evaluate their investment strategy carefully.

The listing on the NSE SME platform will allow investors to monitor the stock’s performance closely, with expectations that it will generate stable returns in the medium to long term. Whether you are an individual investor or a high-net-worth individual, this IPO is one to watch as it progresses through its subscription and allotment stages.

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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