C2C Advanced Systems IPO Overview

C2C Advanced Systems has established itself as a leader in delivering cutting-edge product engineering solutions, professional services, and high-quality products for over 25 years. With global operations, the company adheres to stringent quality standards, ensuring customer satisfaction and technical excellence.

The company’s Book Built Issue is valued at ₹94.68 Crores, comprising entirely a Fresh Issue of 43.83 lakh shares. The subscription period for the IPO runs from November 22, 2024, to November 26, 2024. Shares will be listed on the NSE SME platform, with the tentative listing date set for November 29, 2024.

Key IPO Details

1. Price Band and Market Capitalization:
   The share price is set at ₹214-₹216 per equity share, with the upper price band reflecting a market capitalization of ₹359.44 Crores.

2. Lot Size and Investment Requirements:
   Retail investors must buy a minimum lot of 600 shares, with an initial investment of ₹1,29,600. High-Net-Worth Individuals (HNIs) need to purchase at least two lots (1,200 shares) at ₹2,59,200.

3. Lead Managers and Registrars:
   Beeline Capital Advisors and Mark Corporate Advisors are the book-running lead managers. Link Intime India Private Limited handles the registrar services, while Spread X Securities serves as the market maker.

Financial Performance

C2C Advanced Systems has shown remarkable growth:

• Revenue: Grew from ₹34.79 Lakhs in FY22 to ₹4,129.82 Lakhs in FY24.
• EBITDA: Turned positive in FY23 at ₹386.20 Lakhs, reaching ₹1,856.45 Lakhs in FY24.
• Profit After Tax (PAT): Improved from a loss of ₹-238.21 Lakhs in FY22 to ₹1,227.69 Lakhs in FY24.

Such steady growth highlights the company’s strong operational efficiency and scalability.

Grey Market Premium (GMP)

The Grey Market Premium for C2C Advanced Systems is ₹174, representing a potential 77% listing gain. However, investors should exercise caution as GMP is not an official indicator and depends on unorganized trading dynamics.

Allotment and Listing Details

The allotment will be finalized on November 27, 2024, and investors can check their status on the registrar's website by:

1. Selecting C2C Advanced Systems IPO from the dropdown.
2. Entering the application number, PAN, or DP Client ID.
3. Submitting the details to view the status.

Use of IPO Proceeds

Funds raised will be utilized for:

1. ₹1,473.10 Lakhs: Upgrading the existing experience center and setting up a new one in Dubai.
2. ₹458 Lakhs: Fit-outs for new premises in Bengaluru and Dubai.
3. ₹160 Lakhs: Security deposits for new Bengaluru premises.
4. ₹4,600 Lakhs: Working capital requirements.
5. General corporate purposes.

Valuation and Recommendations

C2C Advanced Systems offers shares at a pre-issue EPS of ₹15.85 and a post-issue EPS of ₹7.37, with P/E ratios of 13.50x (pre-issue) and 29.30x (post-issue). Compared to the industry P/E ratio of 116.89x, the IPO appears attractively priced.

RoE for FY24 stands at 16.21%, underlining strong return potential. Given the company’s robust financials, operational growth, and attractive valuations, investors are recommended to apply for potential listing gains and long-term benefits.

This comprehensive analysis positions C2C Advanced Systems as a lucrative investment opportunity, offering insights into its financial health and IPO dynamics.

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