The C2C Advanced Systems IPO, which opened on November 22, 2024, and closed on November 26, 2024, attracted significant investor interest, ultimately achieving 116.64 times subscription by the final day. This book-built issue, with a fresh issue of 43.83 lakh shares, is priced in the band of ₹214 to ₹216 per equity share. At the upper price of ₹216, the IPO sets the company’s market capitalization at ₹359.44 crores.

C2C Advanced Systems IPO Subscription and Allotment Details

The lot size for this IPO is 600 shares, requiring a minimum investment of ₹1,29,600 for retail investors, while HNIs must invest in at least 2 lots, amounting to ₹2,59,200. The IPO has attracted a Grey Market Premium (GMP) of ₹0, suggesting that there may be limited movement in the stock price upon listing.

The IPO subscription status shows a remarkable response, though the GMP signals no significant pre-listing excitement. This reflects cautious optimism in the market, as the Grey Market Premium is based on supply and demand dynamics, which are often not indicative of future market performance.

Company Overview and Financial Performance

With over 25 years of experience, C2C Advanced Systems has established itself as a trusted provider of professional services, product engineering solutions, and a range of products aimed at empowering clients globally. The company has consistently maintained high standards of quality, earning a strong reputation in its field.

For the fiscal years 2024, 2023, and 2022, the company reported a substantial growth in revenues, with figures of ₹4,129.82 lakhs, ₹806.73 lakhs, and ₹34.79 lakhs, respectively. Notably, the company shifted from negative EBITDA in 2022 to ₹1,856.45 lakhs in FY24. This turnaround in profitability is supported by a Profit After Tax (PAT) of ₹1,227.69 lakhs in FY24, a strong performance compared to the PAT of ₹287.52 lakhs in FY23.

Valuation and Market Outlook

The pre-issue earnings per share (EPS) stands at ₹15.85, while the post-issue EPS is expected to be ₹7.37. At the issue price of ₹216, this translates to a pre-issue P/E ratio of 13.50x and a post-issue P/E ratio of 29.30x, which is fairly priced when compared to the industry average of 116.89x. The Return on Equity (RoE) for FY24 is 16.21%, indicating good returns for shareholders.

However, the Grey Market Premium (GMP) of ₹0 indicates no strong demand for the IPO in the unorganized market, reflecting a cautious approach from investors. Given this lack of pre-listing excitement and the company's fairly valued metrics, there is uncertainty about significant listing gains.

The Upcoming IPOs in this week and coming weeks are  Agarwal Toughened, Ganesh Infraworld, Suraksha Diagnostic, Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Apex Ecotech, Abha Power and Steel, Rajputana Biodiesel, and Rajesh Power Services.

Objectives of C2C Advanced Systems IPO

The company intends to use the proceeds from the IPO for the following purposes:

1. ₹1,473.10 Lakhs for capital expenditure towards the purchase of fixed assets, including hardware and software for operations and expansion to new locations, including Dubai.
2. ₹458 Lakhs for the fit-outs at their new premises in Bengaluru and Dubai.
3. ₹160 Lakhs for the payment of a security deposit for their new Bengaluru office.
4. ₹4,600 Lakhs to fund working capital requirements.
5. To cover general corporate purposes.

C2C Advanced Systems IPO Review and Investment Advice

Despite impressive revenue growth and profitability improvements, the C2C Advanced Systems IPO faces mixed market sentiment. The GMP of ₹0 suggests that investors should temper expectations of listing gains, and the valuation appears to be fairly priced compared to industry peers. While the company’s financials indicate a stable future, it might not offer substantial returns in the short term.

Therefore, we recommend caution when considering the C2C Advanced Systems IPO for either listing gains or long-term investments. Investors should keep an eye on the listing performance and assess whether the company can deliver on its expansion and operational goals after the IPO.

To check your C2C Advanced Systems IPO allotment status, visit the Registrar Website after the allotment date of November 27, 2024. You can enter your application number, PAN, or DP Client ID to track your allotment. Keep an eye on the live subscription updates and IPO developments on the NSE SME page.

For those interested in exploring financial independence, investment opportunities, and learning about current affairs, platforms like Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today provide excellent resources for growing your knowledge and wealth. Additionally, staying informed through Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News can keep you updated on the latest trends in the world of finance.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.