C2C Advanced Systems IPO: Strong Debut for Defense Electronics Firm

IPO oversubscribed, strong GMP, high investor interest

C2C Advanced Systems IPO: Strong Debut for Defense Electronics Firm The initial public offering (IPO) of C2C Advanced Systems, a defense electronics solutions provider, has seen significant interest since it opened on November 22, 2024. By 10:54 AM on the second day, the IPO had been subscribed over 43 times, with bids placed for 12,64,53,000 shares compared to the 29,14,800 shares on offer. The IPO, priced in the range of ₹214 to ₹226 per share, will remain open until November 26.

Grey Market Premium (GMP)
Unlisted shares of C2C Advanced Systems were trading at ₹471 each in the grey market on November 25, reflecting a premium of ₹245 or 108.41 percent over the upper issue price of ₹226. This substantial GMP indicates high market expectations for a strong listing.

Subscription Breakdown

• Retail investors: 66.24 times subscription
• Non-institutional investors (NIIs): 47.17 times subscription
• Qualified institutional buyers (QIBs): 0.54 times subscription

Key Details

• Offer size: Entirely fresh issue of 43.84 lakh shares
• Lot size: Minimum application is 600 shares, requiring retail investors to invest at least ₹135,600. High-net-worth individuals (HNIs) need a minimum of 2 lots (1,200 shares) amounting to ₹271,200.
• Closing date: November 26, 2024
• Allotment date: November 27, 2024
• Listing date: Tentatively set for November 29, 2024, on NSE SME

Financial Performance
C2C Advanced Systems reported significant growth in its financials, with revenue increasing by 412 percent and profit after tax (PAT) rising by 327 percent between FY 2023 and FY 2024.

Lead Managers and Registrar
The IPO is managed by Mark Corporate Advisors Private Limited and Beeline Capital Advisors Pvt Ltd, with Link Intime India Private Ltd serving as the registrar. Spread X Securities is the market maker for this IPO.

The high level of subscription and robust GMP reflect strong investor confidence, hinting at a potentially impressive debut for C2C Advanced Systems.

C2C Advanced Systems IPO: Strong Debut for Defense Electronics Firm  Bengaluru-based defense electronics solutions provider C2C Advanced Systems has garnered massive interest from retail investors as its initial public offering (IPO) progresses on the NSE-Emerge platform. The IPO, which opened on November 22 and closes on November 26, has received over one lakh retail applications. Priced within a range of ₹214-226 per share, the SME-IPO requires a minimum lot size of 600 shares.

Subscription Status
By Day 1, the IPO had seen bids for 7.74 crore shares, compared to the 31,34,400 shares available after accounting for the anchor portion.

• Retail portion: Subscribed 41.48 times
• HNI portion: Subscribed 24.7 times
• QIB portion: Subscribed 0.53 times

The offering allocates 50 percent of the issue to qualified institutional buyers (QIBs), 15 percent to high-net-worth individuals (HNIs), and 35 percent to retail investors. The entire IPO comprises a fresh issue of 43.84 lakh shares, with a total valuation of ₹99.07 crore.

Anchor Investors
Ahead of the public offering, C2C Advanced Systems raised ₹28.23 crore from anchor investors. A total of 12.49 lakh shares were allocated at ₹226 per share to eight anchor investors, including Aarth AIF, Bengal Finance & Investment, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund, and Shine Star Build Cap Fund.

About C2C Advanced Systems
C2C Advanced Systems specializes in vertically integrated defense electronics solutions, offering a broad spectrum of products, services, and engineering solutions. Its expertise spans areas like C4I systems for enhanced situational awareness, AI/ML-driven big data analytics, enterprise integration with real-time IIOT data, and advanced embedded/FPGA designs.

The company’s clientele includes the Indian Navy, HAL, BHEL, Indian Army, Semcon, Bharat Forge, Dassault Systems, and L&T Defence.

Use of IPO Proceeds
The net proceeds from the IPO will be allocated for:

• Capital expenditures, including fixed assets for existing operations and its Dubai Center (₹14.73 crore)
• Fit-outs for existing facilities (₹4.58 crore)
• Security deposit for new Bengaluru premises (₹1.60 crore)
• Working capital requirements (₹46 crore)

This robust subscription response highlights strong investor confidence in C2C Advanced Systems’ growth potential and market leadership.

C2C Advanced Systems IPO: Strong Debut for Defense Electronics Firm  The initial public offering (IPO) of defense electronics solutions provider C2C Advanced Systems witnessed a remarkable response on its first day, with the issue being oversubscribed by 24.68 times. Investors placed bids for 7.73 crore equity shares, significantly surpassing the IPO size of 31.34 lakh shares.

The New Delhi-based company aims to raise ₹99.07 crore through this public issue, offering 43.83 lakh equity shares at a price range of ₹214-226 per share.

Strong Response from Retail and NIIs
Non-institutional investors (NIIs) led the way, subscribing 41.48 times their allocated portion. Retail investors also showed strong interest, subscribing 26.4 times their reserved portion. Meanwhile, qualified institutional buyers (QIBs) subscribed to 50 percent of their allocated shares on the first day.

Prior to the IPO opening, the company raised ₹28.23 crore on November 21 through its anchor book, issuing 12.49 lakh shares at ₹226 each. Prominent anchor investors included Aarth AIF, Bengal Finance, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital, Negen Undiscovered Value Fund, and Shine Star Build Cap.

Planned Utilization of IPO Proceeds
The funds raised will support the acquisition of fixed assets, such as hardware and software, to bolster current operations and establish an Experience Centre in Dubai. Proceeds will also be used for:

• Fit-outs for new facilities in Bengaluru and Dubai
• Security deposits for the Bengaluru premises
• Working capital needs
• General corporate purposes

The overwhelming Day 1 response highlights investor confidence in C2C Advanced Systems and its growth trajectory in the defense electronics sector.