ATC Energies System is a well-established company engaged in the development and manufacturing of customized Li-Ion Battery Packs and products across various grades. The company is recognized as one of Asia's top 10 brands in design and production capacity, providing high-quality battery solutions that cater to diverse industries.

The ATC Energies System IPO is a Book-Built issue amounting to ₹ 63.76 Crores, which includes a fresh issue of 43.23 Lakh shares valued at ₹ 51.01 Crores and an offer for sale (OFS) of 10.80 Lakh shares worth ₹ 12.74 Crores. The subscription period for the IPO begins on March 25, 2025, and ends on March 27, 2025. The allotment date is expected to be finalized on March 28, 2025, with the shares listed on the NSE SME on April 02, 2025.

Share Price Band and Market Capitalization

The share price band for ATC Energies System IPO is set between ₹ 111 and ₹ 118 per equity share. Based on the upper end of the price band, the company’s market capitalization at ₹ 118 per share is ₹ 240.58 Crores.

• Lot Size: 1,200 shares

• Retail Investor Minimum Investment: ₹ 1,41,600

• HNIs Minimum Investment: 2 lots (2,400 shares), amounting to ₹ 2,83,200

IPO Details and Subscription Status

The ATC Energies System IPO is being managed by Indorient Financial Services Limited as the Book Running Lead Manager. KFIN Technologies Limited is the registrar, and Alacrity Securities Limited serves as the market maker for the issue.

As of March 27, 2025, the ATC Energies System IPO has been subscribed 1.58 times on its final day.

• IPO Price Range: ₹ 111 to ₹ 118 per equity share

• GMP Today: ₹ 0 (No premium based on current financial performance)

• Listing Date: April 02, 2025

Anchor Investors and Allocation

The company has raised ₹ 10.88 Crores from anchor investors at ₹ 118 per share. A total of 9,22,800 equity shares were allocated to the anchor investors. This subscription ensures a solid foundation for the IPO's success, with anchor investors subscribing at the upper price band.

Objectives of the ATC Energies System IPO

The proceeds from the IPO will be utilized for several key purposes, including:

1. ₹ 952.83 Lakhs for the repayment of borrowings associated with the Noida factory, including land and building.

2. ₹ 672.16 Lakhs for capital expenditures to refurbish and upgrade the Noida factory.

3. ₹ 746.88 Lakhs to upgrade IT systems across their Noida, Vasai factories, and registered office.

4. ₹ 950.00 Lakhs for working capital requirements.

5. General Corporate Purposes.

Financial Performance Review

ATC Energies System has shown steady growth in its financial performance, with increasing revenues and profits. The company’s key financial metrics for the fiscal year 2024 are as follows:

• Revenue from operations (Sep 30, 2024): ₹ 2,249.41 Lakhs

• EBITDA (Sep 30, 2024): ₹ 825.42 Lakhs

• Profit After Tax (Sep 30, 2024): ₹ 577.15 Lakhs

Over the past few years, the company has demonstrated consistent growth:

• Revenue (FY 2023): ₹ 5,120.37 Lakhs

• EBITDA (FY 2023): ₹ 1,547.37 Lakhs

• Profit After Tax (FY 2023): ₹ 1,089.16 Lakhs

These figures reflect ATC Energies System's stable financial performance and operational strength.

Key Ratios

• Pre-Issue EPS: ₹ 6.78

• Post-Issue EPS: ₹ 5.34

• Pre-Issue P/E Ratio: 17.40x

• Post-Issue P/E Ratio: 22.09x

• Industry P/E Ratio: 31x

• ROCE (FY24): 42.66%

• ROE (FY24): 39.38%

These ratios suggest that the IPO is fairly priced, with a competitive P/E ratio compared to the industry.

Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) for ATC Energies System IPO is ₹ 0. This reflects limited market activity and indicates that the listing price might align closely with the upper end of the IPO price band. This lack of a significant premium suggests that investors may want to approach the IPO with caution, especially considering there are no immediate listing gains predicted.

ATC Energies System IPO Review and Investment Outlook

Based on the financial performance, IPO valuation, and growth potential, we recommend avoiding the ATC Energies System IPO for short-term listing gains or long-term investment purposes. While the company operates in a growing sector with solid fundamentals, the limited Grey Market Premium and the pricing based on current metrics suggest that the IPO may not offer immediate upside potential. Therefore, investors should consider other opportunities or wait for the stock to stabilize post-listing before making an investment.

This concludes the detailed analysis of the ATC Energies System IPO. Be sure to check your allotment status after March 28, 2025, and monitor the company’s performance post-listing to make an informed decision.

The Current active IPO are Aten Papers & Foam Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Retaggio Industries Limited.

The Closed IPOs are  Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited.

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