The C2C Advanced Systems IPO is generating significant interest among investors. With an issue size of ₹99.07 crore, this IPO represents a unique investment opportunity in a company that specializes in defense electronics solutions. Below is a detailed breakdown of the IPO, company financials, and competitive strengths to help you make an informed decision.
Key IPO Details
- Issue Type: Book Built Issue IPO
- IPO Dates: Opens on November 22, 2024, and closes on November 26, 2024.
- Issue Size: 43.84 lakh shares, aggregating to ₹99.07 crore.
- Price Band: ₹214 to ₹226 per share.
- Lot Size: Minimum 600 shares, with a retail investment starting at ₹135,600.
The allotment date is expected on November 27, 2024, with a tentative listing date of November 29, 2024, on the NSE SME platform.
Subscription and Reservation Details
The IPO allocation is categorized as follows:
- QIB (Qualified Institutional Buyers): Not more than 50% of the net issue.
- Retail Investors: Not less than 35% of the net issue.
- Non-Institutional Investors (NII/HNI): Not less than 15% of the net issue.
Anchor investors have already committed ₹28.23 crore, with shares allocated on November 21, 2024. Anchor investors will face a lock-in period, with 50% of shares locked until December 27, 2024, and the remaining shares until February 25, 2025.
Prominent Entities Involved
- Lead Managers: Mark Corporate Advisors Private Limited and Beeline Capital Advisors Pvt Ltd.
- Registrar: Link Intime India Private Ltd.
- Market Maker: Spread X Securities.
About C2C Advanced Systems Limited
Incorporated in 2018, C2C Advanced Systems Limited focuses on delivering high-tech defense electronics solutions. Formerly known as C2C-DB Systems Private Limited, the company offers services and products that support digital transformation in defense operations.
Key Business Verticals:
- Virtual Supply Chain: Real-time data processing for actionable insights.
- Virtual Logistics: Delivery of ruggedized, off-the-shelf subsystems capable of withstanding harsh conditions.
- Virtual Maintenance: Integration of subsystems to enhance situational awareness for defense leaders.
- AI/ML Applications: Advanced AI/ML technologies across all offerings for innovative solutions.
Product Portfolio:
- Combat Management Systems
- Anti-Drone Command Systems
- Integrated Vessel Management Systems
- C4I Systems (Command, Control, Communications, Computers, and Intelligence)
With a workforce of 190 employees as of October 2024, the company is well-positioned to expand its market presence.
Competitive Strengths
- Comprehensive Solutions: Offers a wide range of defense-oriented products and services.
- Innovation-Driven: Strong R&D capabilities aligned with government initiatives like “Atmanirbhar Bharat” and “Make in India.”
- Experienced Leadership: Managed by a seasoned team of experts.
- Global Reach: Strong relationships with domestic and international clients.
Financial Performance
C2C Advanced Systems has shown remarkable growth over the years, with a 412% increase in revenue and a 327% rise in profit after tax (PAT) from FY2023 to FY2024.
Financial Highlights (in ₹ Lakhs):
| Period Ended | Assets | Revenue | PAT | Net Worth | Debt/Equity | RoNW | PAT Margin |
|---|---|---|---|---|---|---|---|
| 30 Sep 2024 | 11,058.01 | 4,324.97 | 972.99 | 8,618.72 | 0.15 | 11.29% | 22.51% |
| 31 Mar 2024 | 8,583.51 | 4,129.82 | 1,227.69 | 7,645.73 | – | – | – |
The company has also improved its EPS (Earnings Per Share) from ₹10.02 (Pre-IPO) to ₹11.69 (Post-IPO), making it a lucrative option for investors.
IPO Objectives
The funds raised will be allocated as follows:
- Capital Expenditure: Purchase of fixed assets for operational upgrades, including an Experience Centre in Bengaluru and Dubai.
- New Premises: Fit-outs and security deposits for new facilities in Bengaluru.
- Working Capital: To enhance operational efficiency.
- Corporate Purposes: General expenditures to support business growth.
Investment Highlights
Investors are encouraged to review the Red Herring Prospectus (RHP) for a deeper understanding of the company’s prospects and risks.
Reasons to Consider:
- Strong financial performance and market position.
- Strategic focus on indigenous defense solutions.
- Alignment with national initiatives promoting self-reliance in defense manufacturing.
C2C Advanced Systems IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | November 22, 2024 |
| IPO Close Date | November 26, 2024 |
| Basis of Allotment | November 27, 2024 |
| Refunds Initiated | November 28, 2024 |
| Shares Credited | November 28, 2024 |
| Listing Date | November 29, 2024 |
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Conclusion
The C2C Advanced Systems IPO is an exciting opportunity for investors looking to capitalize on a high-growth, defense-focused company. With strong financials, innovative offerings, and alignment with key government initiatives, this IPO offers potential for medium- to long-term gains.
However, as with any investment, due diligence is essential. Ensure to assess your risk tolerance and investment goals before subscribing.