The C2C Advanced Systems IPO has made a significant mark with an offering of ₹94.68 crores, entirely as a fresh issue. With a share price range set between ₹214 and ₹216, this IPO presents an exciting opportunity for retail and institutional investors alike. The subscription has been overwhelming, having been subscribed 46 times by the second day, a clear indicator of high demand and investor interest.

IPO Details and Pricing

The C2C Advanced Systems IPO is a book-built issue, with 43.83 lakh shares up for subscription. This offering will see C2C Advanced Systems Limited listed on the NSE SME platform, marking a significant milestone for the company. The share price is set within a range of ₹214 to ₹216, giving a market capitalization of ₹359.44 crores at the higher price band.

The Current active IPO is Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers and Lomosaic India.

For retail investors, the lot size is set at 600 shares, which requires a minimum investment of ₹1,29,600. For High Net-Worth Individuals (HNIs), a minimum investment of ₹2,59,200 is required, with an investment in two lots (1,200 shares).

Anchor Investors and IPO Subscription Status

On the first day, the C2C Advanced Systems IPO already showed remarkable interest, with 46X subscription on the second day of the subscription period. Notably, the company has raised ₹28.23 crores from anchor investors at ₹226 per share. This shows a strong backing from institutional investors as well, adding to the IPO's credibility.

The Grey Market Premium (GMP), which plays a crucial role in assessing potential listing gains, is currently ₹174, which is a 77% premium. This further strengthens the view that C2C Advanced Systems could experience strong listing gains upon its debut on the stock exchange.

Utilization of IPO Proceeds

The proceeds from the IPO will be used for key strategic purposes:

1. ₹1,473.10 lakhs will be allocated for capital expenditure, including the upgradation of the company's Experience Centre and setting up a new Training Centre in Bengaluru, along with a new Experience Centre in Dubai.
2. ₹458 lakhs will be utilized for fit-outs at the company's new premises in both Bengaluru and Dubai.
3. ₹160 lakhs will be used for the payment of security deposits for the new premises.
4. A significant portion of the funds, ₹4,600 lakhs, will be earmarked for working capital requirements, ensuring smooth day-to-day operations.
   
   The Upcoming IPOs in this week and coming weeks are Rajputana Biodiesel, Apex Ecotech, Abha Power and Steel, Agarwal Toughened, Ganesh Infraworld, Rosmerta Digital, Avanse Financial and Nisus Finance.

Financial Overview

For the fiscal year 2024, C2C Advanced Systems reported revenues of ₹4,129.82 lakhs, with an EBITDA of ₹1,856.45 lakhs and a Profit after Tax (PAT) of ₹1,227.69 lakhs. These figures mark a strong recovery compared to the previous years, where the company had faced challenges. The pre-issue earnings per share (EPS) stand at ₹15.85, with a post-issue EPS of ₹7.37, suggesting a fairly priced IPO in terms of valuation.

The company’s Return on Equity (RoE) stands at a healthy 16.21% for FY24, which adds to the investment appeal of this IPO. When comparing the Price-to-Earnings (P/E) ratio with industry standards, the pre-issue P/E is 13.50x, significantly lower than the industry P/E of 116.89x, indicating that the IPO is attractively priced.

IPO Allotment Process

Investors eagerly awaiting the IPO allotment can expect results by November 27, 2024. To check the allotment status, simply visit the registrar’s website, enter your application number, PAN, or DP Client ID, and submit the details to view your allotment status.

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