C2C Advanced Systems Limited is a distinguished provider of product engineering solutions, professional services, and product offerings. With a strong track record of over 25 years in the industry, the company focuses on delivering superior outcomes to its global clientele. C2C Advanced Systems is all set to launch its Initial Public Offering (IPO), which will open for subscription on November 22, 2024, and close on November 26, 2024. The fresh issue comprises 43.83 lakh shares, and the company is aiming to raise ₹94.68 Crores from the market. The shares will be listed on the NSE SME with a tentative listing date of November 29, 2024.

C2C Advanced Systems IPO Pricing and Subscription Details

The share price for the C2C Advanced Systems IPO is set in the range of ₹214 to ₹216 per equity share. At the top price of ₹216 per share, the company’s market capitalization stands at ₹359.44 Crores. The IPO's lot size is 600 shares, meaning retail investors need to invest a minimum of ₹1,29,600. For High-Net-Worth Individuals (HNIs), the minimum application is 2 lots (1,200 shares), amounting to ₹2,59,200. The subscription period for the IPO starts on November 22, 2024, and ends on November 26, 2024.

C2C Advanced Systems IPO Subscription Process:
After the subscription period ends, the allotment is expected to be finalized by November 27, 2024, with the shares scheduled to list on the NSE SME on November 29, 2024. Investors can check the allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID. The IPO is expected to generate significant interest, especially given the company's growth trajectory and solid financial performance.

Financial Metrics and Valuation

The company has reported strong financials in recent years. For the fiscal year 2024, C2C Advanced Systems recorded revenues of ₹4,129.82 Lakhs and a Profit After Tax (PAT) of ₹1,227.69 Lakhs, demonstrating a substantial improvement from earlier years. The EBITDA for the same period was ₹1,856.45 Lakhs. Notably, the company’s EPS for the IPO is ₹15.85 pre-issue and ₹7.37 post-issue. The P/E ratio for the pre-issue is 13.50x, which is significantly lower than the industry average of 116.89x, indicating that the IPO is fully priced and could offer value for money.

C2C Advanced Systems IPO Objectives

The proceeds from the fresh issue will be utilized for several purposes:

1. ₹1,473.10 Lakhs will be used for capital expenditure, including purchasing hardware and software for expanding operations, as well as establishing experience centers in Bengaluru and Dubai.
2. ₹458.00 Lakhs will fund fit-outs for new premises in both Bengaluru and Dubai.
3. ₹160.00 Lakhs will be used for security deposits related to new premises in Bengaluru.
4. A significant portion, ₹4,600.00 Lakhs, will be allocated towards funding the company’s working capital needs.
5. The remaining funds will be used for general corporate purposes.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the C2C Advanced Systems IPO stands at ₹104, indicating a potential listing gain of approximately 46% upon its debut on the stock exchange. However, it’s important to note that GMP is not a reliable indicator of a stock’s actual performance post-listing. It is driven by supply and demand dynamics in the unorganized market, and real price discovery only occurs once the shares are officially listed.

C2C Advanced Systems IPO Review

The company’s growth trajectory and strong financial performance make this IPO attractive for investors looking for both short-term listing gains and long-term potential. C2C Advanced Systems has managed to turn around its financials in recent years, showcasing significant growth in revenues and profits. With a post-issue EPS of ₹7.37 and a market capitalization of ₹359.44 Crores at the top price band, the IPO appears well-valued compared to its industry peers. For investors interested in listing gains or long-term investments, applying for the C2C Advanced Systems IPO could be a worthwhile opportunity.

Investing in the C2C Advanced Systems IPO

Retail investors interested in subscribing to the C2C Advanced Systems IPO can do so via the ASBA (Application Supported by Blocked Amount) process through their banks or online trading platforms. Ensure that you meet the eligibility criteria and have a Demat account ready for share allotment. For High-Net-Worth Individuals (HNIs), applying for multiple lots could offer greater exposure to the IPO.

With its strong financial metrics, promising growth prospects, and a robust market demand indicated by the Grey Market Premium, the C2C Advanced Systems IPO stands as a promising investment opportunity for investors looking to diversify their portfolios with stocks in the technology and product engineering sector.

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