ATC Energies System, a producer and supplier of lithium-ion batteries, is set to enter the market with its initial public offering (IPO) worth ₹63.76 crores, comprising a fresh issue of 43.24 lakh shares. The subscription window will be open from March 25, 2025, to March 27, 2025, with the company preparing for its listing on the NSE SME platform on Thursday, April 2, 2025.
The IPO offers equity shares with a face value of ₹10, priced within a range of ₹112 to ₹118 per share, with a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,34,400 for one lot, while High Net-worth Individuals (HNIs) can subscribe with a minimum of ₹2,83,200 for two lots. The share allotment is scheduled for March 28, 2025, followed by the company’s listing on April 2, 2025. As ATC Energies System makes its public market debut, investors have the opportunity to be part of a growing player in India’s energy sector.
ATC Energies System IPO is a fundraise worth ₹63.76 crores comprising purely of a fresh issue with 43.24 lakh shares reserved for the market maker Alacrity Securities Limited. Qualified Institutional Buyers are being offered not more than 30% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 35% of the net issue. The IPO will be available for subscription from March 25, 2025, to March 27, 2025, providing an opportunity for investors looking to gain a stake in the energy space.
| ATC Energies System date | March 25, 2025 - March 27, 2025 |
| Price band | ₹112 to ₹118 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 43,23,600 shares amounting to ₹51.02 crores |
| Total issue size | 10,80,000 shares amounting to ₹12.74 crores |
| Listing at | NSE SME |
| Market maker portion | 2,71,200 - Alacrity Securities Pvt Ltd |
| Shareholding post-issue | 2,03,88,600 shares |
| Shareholding pre-issue | 1,60,65,000 shares |
The ATC Energies System IPO opens for subscription on March 25, 2025, and closes on March 27, 2025, with allotment scheduled for March 28, 2025.
| IPO open date | March 25, 2025 (Tuesday) |
| IPO close date | March 27, 2025 (Thursday) |
| Basis of allotment | March 28, 2025 (Friday) |
| Initiation of refunds | April 1, 2025 (Tuesday) |
| Credit of shares to Demat account | April 1, 2025 (Tuesday) |
| Listing date on NSE SME | April 2, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on March 27, 2025 (Thursday) |
Founded in 2020, ATC Energies System Limited operates in the energy sector, specializing in energy solutions, products, and services. The company focuses on manufacturing efficient and cost-effective lithium and Li-ion batteries, catering to industries such as banking, automobiles, and other sectors requiring advanced energy storage solutions. Over time, it has expanded from producing mini batteries for the banking sector to offering a diverse range of battery sizes, providing customized solutions through in-house design and engineering expertise.
Headquartered in Mumbai, the company has manufacturing facilities in Vasai, Thane, and Noida, equipped with advanced battery assembly technology. These facilities feature state-of-the-art equipment, including temperature chambers, welding systems, and testing units, ensuring high-quality production and innovation in energy storage solutions.
The net proceeds from ATC Energies System Limited's IPO will be utilized for multiple strategic objectives, including repaying or pre-paying borrowings related to the purchase of its Noida factory and funding capital expenditures for refurbishment, civil work, and upgrades at the same facility. Additionally, the company plans to invest in IT infrastructure enhancements at its Noida and Vasai factories, as well as its registered office. A portion of the proceeds will also be allocated to meet the company's working capital requirements.
As of September 30, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 39.38%, Return on Capital Employed (ROCE) at 42.66% and a Debt-to-Equity ratio of 0.32. The Return on Net-Worth (RoNW) stands at 39.38%, and the PAT Margin was 21.27. The Price to Book Value was 5.73. The company’s market capitalisation is ₹240.59 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 22.57 | 51.51 | 33.22 | 36.52 |
| Assets | 71.82 | 50 | 40.72 | 36.05 |
| Net Worth | 38.87 | 33.1 | 22.21 | 14.45 |
| Profit After Tax | 5.77 | 10.89 | 7.76 | 11.86 |
| Reserves & Surplus | 22.81 | 17.04 | 19.66 | 11.9 |
| Total Borrowing | 24.26 | 10.51 | 10.59 | 11.81 |
Amount in ₹ crores
The pre-IPO EPS is at ₹6.78 while the post-IPO EPS will be ₹5.66. Similarly, the pre-IPO Price to Earnings ratio is 17.4 and will become 20.84 post-IPO.
The company offers a wide range of lithium and Li-ion battery solutions, catering to banking, automotive, and industrial sectors. This diversified product portfolio reduces dependency on any single market, ensuring consistent demand and revenue stability. By serving multiple industries, the company can capitalize on sector-specific growth trends, expanding its footprint and enhancing long-term business resilience.
Additionally, its exclusive focus on lithium-ion battery and energy storage systems gives it a competitive edge in a rapidly evolving industry. With tailored solutions for different applications, the company can address specific customer needs, further strengthening its position in the market. The presence of well-located manufacturing units in Vasai and Noida ensures efficient production, cost management, and logistical advantages.
With advanced manufacturing facilities and cutting-edge technology, the company maintains strict quality control measures, ensuring high performance and reliability in its energy solutions. This focus on quality enhances customer satisfaction and builds a strong reputation, leading to a growing base of repeat customers. The company’s proactive supply chain strategy, supported by multi-vendor relationships, helps mitigate sourcing risks and ensures consistent product availability.
Significant investments in research and development further support its commitment to innovation, enabling the company to stay ahead of industry trends. A dedicated team of skilled professionals and an experienced leadership ensure operational excellence and the continuous development of next-generation battery solutions. These strengths position the company well for sustained financial growth and long-term competitiveness.
The company’s reliance on critical raw materials such as lithium, nickel, cobalt, graphite, and manganese makes it vulnerable to supply shortages and price fluctuations. Given the dependency on imports—particularly from China—external factors like political tensions, trade restrictions, and global supply chain disruptions could impact profitability. Without long-term supplier contracts, the risk of cost escalations and material shortages further heightens operational uncertainty.
Moreover, a significant portion of revenue comes from two Promoter Group entities, Agarwal Trading Company and Hind Industries—raising concerns about revenue concentration. Any reduction in orders or conflicts of interest within these related-party transactions could adversely affect the company’s financial stability. The heavy reliance on the banking sector, contributing 57% of revenue in the most recent period, also presents a risk. A downturn in this industry could significantly impact business growth and sustainability.
The company has faced negative cash flows in certain periods, with net cash from operating activities showing inconsistencies over the years. While FY24 reflected a positive cash flow, fluctuations in prior fiscal years indicate potential operational challenges in managing liquidity. Delays in statutory payments, such as EPF contributions and GST filings, though minor, raise concerns about compliance and potential penalties if repeated in the future.
Additionally, the company has an outstanding unsecured, interest-free loan of INR 5.48 crore from promoter Sandeep Gangabishan Bajoria. Since the loan can be recalled at any time, the company may be forced to seek external borrowing at higher interest rates or use internal funds, impacting overall profitability. If converted into equity, it could dilute existing shareholders' stakes, potentially affecting stock prices and investor confidence.
Being among the early public investors in ATC Energies System could present an opportunity to participate in the company's growth trajectory in the space of biofuels. However, investors should carefully assess multiple factors including the company's operational track record, financial health, sector dynamics, and growth strategy, while also considering their own investment objectives and risk appetite before making an investment decision. It's recommended to review the offer document and seek professional advice if needed to make an informed choice about participating in this IPO.
What is the ATC Energies System IPO?
The ATC Energies System IPO is an NSE SME offering consisting of 43.24 lakh equity shares with a face value of ₹10, aiming to raise ₹63.76 crores. The price band has been set between ₹112 to ₹118 per share, with a minimum order quantity of 1,200 shares. This IPO will be open for subscription from March 25, 2025, to March 27, 2025. Indorient Financial Services Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while Alacrity Securities Limited is the market maker.
When will the ATC Energies System open?
The ATC Energies System IPO will open for subscription on March 25, 2025, and will close on March 27, 2025.
When is the ATC Energies System listing date?
The tentative listing date for the ATC Energies System IPO is Wednesday, April 2, 2025.
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