C2C Advanced Systems Limited, a pioneer in professional services and product engineering solutions, is set to launch its Initial Public Offering (IPO). The subscription window for the IPO opens on November 22, 2024, and closes on November 26, 2024, offering investors a promising opportunity to participate in the company’s growth journey.

The IPO comprises a Fresh Issue of 43.83 lakh shares, amounting to a total issue size of ₹94.68 crores. With a price band of ₹214 to ₹216 per share, the market capitalization at the upper price band is expected to reach ₹359.44 crores.

Key IPO Details

• Lot Size: Investors can bid in lots of 600 shares, with a minimum investment of ₹1,29,600 for retail investors and ₹2,59,200 for High-Net-Worth Individuals (HNIs).
• Allotment Date: The allotment is expected to be finalized on November 27, 2024.
• Listing Date: Shares are tentatively scheduled to list on the NSE SME platform on November 29, 2024.

Beeline Capital Advisors Private Limited and Mark Corporate Advisors Private Limited are the book-running lead managers for the issue, while Link Intime India Private Limited is the registrar.

Financial Performance

C2C Advanced Systems has demonstrated impressive growth in recent years, reflecting its strong business fundamentals.

• Revenues:

  • FY24: ₹4,129.82 lakhs
  • FY23: ₹806.73 lakhs
  • FY22: ₹34.79 lakhs

• EBITDA:

  • FY24: ₹1,856.45 lakhs
  • FY23: ₹386.20 lakhs
  • FY22: ₹-208.30 lakhs

• Profit After Tax (PAT):

  • FY24: ₹1,227.69 lakhs
  • FY23: ₹287.52 lakhs
  • FY22: ₹-238.21 lakhs

The company’s Return on Equity (RoE) for FY24 stands at 16.21%, showcasing its operational efficiency.

Objectives of the IPO

The proceeds from the IPO will be utilized for:

1. Capital Expenditure: ₹1,473.10 lakhs for upgrading the existing Experience Centre in Bengaluru and setting up a new one in Dubai.
2. Fit-Outs: ₹458.00 lakhs for premises in Bengaluru and Dubai.
3. Security Deposit: ₹160.00 lakhs for new premises in Bengaluru.
4. Working Capital Requirements: ₹4,600.00 lakhs.
5. General Corporate Purposes.

Grey Market Premium

The Grey Market Premium (GMP) of C2C Advanced Systems IPO is ₹104 (46%), indicating strong demand for the shares. However, it’s essential to note that GMP is based on unregulated trading and serves only as an informational indicator.

Promoters and Expertise

The company’s promoters include C2C Innovations Private Limited, PVR Multimedia Private Limited, and seasoned professionals such as Lakshmi Chandra, Maya Chandra, and others. With over 25 years of industry experience, C2C Advanced Systems has consistently adhered to high-quality standards in its services.

Valuation and Recommendation

The IPO valuation suggests that the issue is fairly priced, with a pre-issue P/E ratio of 13.50x and a post-issue P/E ratio of 29.30x. This is competitive compared to the Industry P/E ratio of 116.89x. The company’s focus on high-growth markets like Bengaluru and Dubai adds to its potential for long-term success.

Given the robust financials, reasonable valuations, and growth-oriented objectives, the C2C Advanced Systems IPO presents an attractive opportunity for investors. The strong Grey Market Premium (GMP) further enhances its appeal for potential listing gains.

Investors are advised to consider this IPO for both short-term listing gains and long-term portfolio growth. With its solid track record and strategic investments in high-demand sectors, C2C Advanced Systems is well-positioned for sustained success.

The Upcoming IPOs in this week and coming weeks are C2C Advanced System, Enviro Infra, Rajesh Power Services, Rajputana Biodiesel, Apex Ecotech, Agarwal Toughened, Ganesh Infraworld, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is NTPC Green Energy and Lomosaic India.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.