The C2C Advanced Systems Limited IPO is creating a buzz in the investment community, thanks to its strategic positioning in the defense electronics sector and robust growth prospects. Here’s a detailed blog covering the C2C Advanced Systems IPO GMP Today, details, subscription status, company background, financial performance, and more.
C2C Advanced Systems IPO Details
The C2C Advanced Systems IPO is a book-built issue aimed at raising ₹99.07 crore entirely through a fresh issue of shares.
| Parameter | Details |
|---|---|
| Issue Price | ₹214 to ₹226 per share |
| Lot Size | 600 shares |
| Minimum Investment | ₹1,35,600 for one lot |
| IPO Size | ₹99.07 crore (43.84 lakh shares) |
| Type | Book-built issue |
C2C Advanced Systems Key Dates
| Event | Date |
|---|---|
| IPO Opening Date | November 22, 2024 |
| IPO Closing Date | November 26, 2024 |
| Allotment Date | November 27, 2024 |
| Refunds Initiation | November 28, 2024 |
| Listing Date | November 29, 2024 |
C2C Advanced Systems Subscription Details
The IPO has seen strong interest from investors, particularly in the retail and non-institutional investor categories.
| Category | Subscription Status |
|---|---|
| Qualified Institutional Buyers (QIB) | 0.53x |
| Non-Institutional Investors (NII) | 26.48x |
| Retail Individual Investors (RII) | 41.81x |
C2C Advanced Systems IPO GMP Today
The C2C Advanced Systems IPO GMP (Grey Market Premium) is currently ₹195. This suggests that the shares may list at ₹421 (₹226 upper price band + ₹195 GMP), offering a potential listing gain of over 86.28%.
What is GMP, and Why Does It Matter?
GMP represents the price at which shares are trading in the grey market before their official listing. It indicates market sentiment and expected demand for the shares. A high GMP, as seen for the C2C Advanced Systems IPO, is a positive sign for potential investors.
C2C Advanced Systems Business Overview
Established in 2018, C2C Advanced Systems Limited operates in the defense electronics sector, specializing in solutions for military and security applications.
Core Offerings
- C4I Systems: Command, Control, Communications, Computers, and Combat Systems for military use.
- Real-Time Data Integration: Tools for enhancing operational efficiency.
- AI and Machine Learning: Advanced analytics for decision-making in defense.
- Embedded Systems: Custom hardware and software for secure operations.
Market Presence
The company has successfully executed key projects, including the Combat Management System for the Royal Malaysian Navy. It also focuses on modernizing legacy systems for the Indian armed forces and has ventured into Industry 4.0 applications.
C2C Advanced Systems Financials
Revenue and Profit
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| 2021 | 1.08 | 0.12 |
| 2022 | 0.35 | 2.38 |
| 2023 | 8.07 | 2.87 |
| 2024 | 41.30 | 12.27 |
Financial Ratios
| Metric | FY24 Value |
|---|---|
| Earnings Per Share (EPS) | ₹15.85 |
| Return on Net Worth (RoNW) | 16.21% |
| Net Asset Value (NAV) | ₹62.37 |
Strong Growth Trajectory
The company’s revenue has grown exponentially, reflecting its success in securing high-value projects and expanding its market reach.
Use of IPO Proceeds
| Purpose | Allocation (₹ Crore) |
|---|---|
| Purchase of Fixed Assets | 14.73 |
| Fit-Outs for Bengaluru and Dubai | 4.58 |
| Security Deposits | 1.60 |
| Working Capital Requirements | 46.00 |
| General Corporate Purposes | 32.16 |
C2C Advanced Systems IPO Review
The C2C Advanced Systems IPO GMP and subscription figures underscore the market’s confidence in the company. Here’s a closer look at the strengths and risks associated with the IPO.
Strengths
- Strategic Sector: Operates in the defense electronics space, aligned with India’s self-reliance initiatives.
- Impressive Financial Growth: Revenue jumped from ₹8.07 crore in FY23 to ₹41.30 crore in FY24.
- Key Projects: Successful deployments for Indian and international defense organizations.
Risks
- Revenue Concentration: Dependence on government contracts could pose risks during policy changes or delays.
- Geopolitical Factors: Being in the defense sector makes it susceptible to geopolitical tensions.
- Client Dependency: A significant portion of revenue comes from a few key clients.
C2C Advanced Systems IPO Allotment
The allotment process for the C2C Advanced Systems IPO will follow SEBI guidelines. Shares will be distributed as follows:
| Category | Allocation (%) |
|---|---|
| QIB | 50% |
| NII | 15% |
| RII | 35% |
Unsuccessful applicants will receive refunds by November 28, 2024, and shares will be credited to successful applicants’ demat accounts on the same day.
FAQs
1. What is the C2C Advanced Systems IPO GMP?
The C2C Advanced Systems IPO GMP Today is ₹185, indicating strong market demand and potential listing gains.
2. What is the minimum investment required?
Retail investors need to invest at least ₹1,35,600 for one lot of 600 shares.
3. When does the IPO close?
The IPO closes on November 26, 2024.
4. How will the IPO funds be used?
Funds will be allocated for purchasing assets, working capital, and corporate purposes.
5. When will the shares be listed?
The shares are expected to list on November 29, 2024, on the NSE SME platform.
6. What is the company’s primary business?
C2C Advanced Systems specializes in defense electronics, providing solutions for military and security applications.
7. Is the IPO oversubscribed?
Yes, the IPO has seen strong oversubscription, especially in the retail and NII categories.
8. What are the financial highlights?
The company reported revenue of ₹41.30 crore and a net profit of ₹12.27 crore in FY24.
9. Who is the lead manager for the IPO?
The lead manager is Inventure Merchant Banker Services Pvt. Ltd.
10. How does C2C Advanced Systems align with India’s defense goals?
The company contributes to India’s defense modernization and self-reliance through its indigenous solutions.
Conclusion
The C2C Advanced Systems IPO GMP reflects strong investor confidence, supported by the company’s robust financials and strategic importance in the defense sector. While there are risks associated with client dependency and geopolitical factors, the company’s exponential growth and innovative offerings make this IPO a promising opportunity for investors.
