C2C Advanced Systems IPO Day 1: Defence Electronics Solutions Provider's ₹99 Crore Issue Subscribed Over 27 Times; Retail Portion Booked 42x

On the first day of bidding, November 22, C2C Advanced Systems' IPO was met with a resounding response, particularly from retail and non-institutional investors. Compared to the IPO size of 29.49 lakh shares, investors bid for 7.92 crore equity shares, resulting in a 27.19-time subscription rate.

Pre IPO Anchor book

Out of the Rs 99-crore IPO, the New Delhi-based company raised Rs 28.23 crore through the anchor book on November 21. At the higher price range, 12.49 lakh shares were purchased by Aarth AIF, Bengal Finance, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital, Negen Undiscovered Value Fund, and Shine Star Build Cap.

Subcription across all categories

Data from the NSE shows , the C2C Advanced Systems IPO has experienced an oversubscription of 27.19 times, with bids for 2,914,800 shares so far, compared to the 7,92,51,600 shares offered.

The retail individual invetors (RIIs) subcribed to IPO 42.64 times with 6,21,44,400 shares out of 1,457,400 shares reserved for them.

There are 624,600 shares reserved for NIIs(Non-Institutional Investors) out of they bid for 1,66,63,200 shares, which translates to 26.68 times subscription for the IPO.

The QIB (Qualified Institutional Buyers), have 832,800 shares reserved for them, out of which they have bid for 4,44,000 shares which translates to a subscription rate of 0.53 times.

Price band and minimum bid

The initial public offering (IPO) of C2C Advanced Systems is priced between Rs 214 and Rs 226 per share. A minimum lot size of 600 shares is required for an investment.

A minimum of Rs 1,35,600 must be invested by retail investors. The minimum lot size investment required for HNI is two lots totaling 1,200 shares, or Rs 2,71,200.

Subscription and listing timeline

Beginning on November 22, 2024, and ending on November 26, 2024, subscriptions will be accepted for the C2C Advanced Systems IPO.

The allocation for the C2C Advanced Systems IPO is expected to be finalized on Wednesday, November 27, 2024.

The C2C Advanced Systems IPO is scheduled to go public on the NSE SME on Friday, November 29, 2024.

Utilisation of the IPO proceeds

Working capital requirements, security deposit payments for the new Bengaluru location, fit-outs for the new locations in Dubai and Bengaluru, and the acquisition of fixed assets (hardware and software) will all be covered by the company using Rs 66.91 crore of the net issue proceeds. The money that remains will be used for routine business functions.

Company financials

It showed excellent financial performance in the years prior, with a profit of Rs 12.3 crore in the fiscal year 2024—a notable increase from Rs 2.9 crore the year before.

During FY23, revenue increased from Rs 8.05 crore to Rs 41.06 crore. On revenue of Rs 43.2 crore, profit for the April–September quarter of FY25 was Rs 9.7 crore.