ATC Energies System, a leading company in the development and manufacturing of customized Li-Ion battery packs/products, is one of Asia's top 10 brands in terms of design and production capacity. The company is offering its IPO through a Book Built Issue amounting to ₹63.76 Crores, with 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.

The subscription period for this IPO opens on March 25, 2025, and closes on March 27, 2025. The shares are expected to be listed on the NSE SME with a tentative listing date of April 02, 2025.

The share price band for the ATC Energies System IPO is set at ₹111 to ₹118 per equity share, with the market capitalization of the company at ₹240.58 Crores at the upper price band. The lot size is set at 1,200 shares, and retail investors need to invest a minimum of ₹1,41,600. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (2,400 shares), totaling ₹2,83,200.

IPO Subscription Details

As of 11:00 AM on March 27, 2025, the ATC Energies System IPO is subscribed 1.10 times on the final day of the subscription period. You can check the live subscription status on the NSE.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the ATC Energies System IPO is reported to be ₹0, based on the company's financial performance. While no real trading happens based on GMP before the listing, it offers an indication of demand and supply, which is unregulated and should not be used for trading decisions. The GMP is mentioned solely for educational purposes.

Anchor Investor Report

ATC Energies System has raised ₹10.88 Crores from anchor investors at a price of ₹118 per share, allocating 9,22,800 equity shares to them. This shows a strong interest from institutional investors, reflecting confidence in the company’s growth potential.

ATC Energies System IPO Allotment Date and How to Check Allotment Status

The allotment date for the ATC Energies System IPO is March 28, 2025. To check the allotment status:

1. Visit the registrar's website.

2. Select ATC Energies System IPO from the dropdown.

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

4. Submit to check your allotment status.

Objectives of the ATC Energies System IPO

The proceeds from the ATC Energies System IPO will be used for the following purposes:

1. ₹952.83 Lakhs for repaying or pre-paying loans related to the purchase of the Noida factory, including land and building.

2. ₹672.16 Lakhs for funding capital expenditure towards factory refurbishment and upgradation in Noida.

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

4. ₹950.00 Lakhs for meeting working capital requirements.

5. General Corporate Purposes.

Financial Performance and Key Metrics

The financial performance of ATC Energies System shows steady growth. The revenues for FY24 stand at ₹2,249.41 Lakhs, and the EBITDA for the same period is ₹825.42 Lakhs. The company has posted a Profit After Tax (PAT) of ₹577.15 Lakhs for FY24.

For FY24, the pre-issue EPS stands at ₹6.78, with a post-issue EPS of ₹5.34. The P/E ratio is 17.40x pre-issue and 22.09x post-issue, indicating that the IPO is priced fairly in comparison to its industry peers, whose P/E ratio stands at 31x.

ROCE (Return on Capital Employed) for FY24 is 42.66%, ROE (Return on Equity) is 39.38%, and RoNW (Return on Net Worth) is 39.38%, indicating healthy profitability and strong financial returns.

Expert IPO Review

ATC Energies System is a well-established player in the growing Li-Ion battery industry with a promising future. Given its stable financial performance, strong leadership, and diversified operations, the company has positioned itself for long-term success. However, with a pre-issue P/E ratio of 17.40x and post-issue P/E of 22.09x, the IPO appears to be fairly priced.

The Grey Market Premium (GMP) of ₹0 and steady financials indicate no significant short-term listing gains. Based on these factors, investors may want to consider avoiding the ATC Energies System IPO for short-term gains but could consider it for long-term investment if they believe in the company’s growth potential.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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