Defense Electronics Solutions Specialist C2C Advanced Systems Limited is poised to make its market debut with a strategic initial public offering (IPO) valued at ₹99.07 crores. The company's maiden public issue comprises a fresh issuance of 43.84 lakh equity shares, with subscriptions opening on November 22, 2024, and closing on November 26, 2024. Market participants can anticipate the company's listing on the NSE SME platform, scheduled for Friday, November 29, 2024, marking a significant milestone in India's defence electronics sector.
C2C Advanced Systems Limited unveils a meticulously structured book-built offering, with shares of ₹10 face value priced between ₹214 to ₹226. The entry threshold comprises 600 shares (lot size), requiring retail investors to commit a minimum of ₹135,600, while HNI participants must subscribe to at least 2 lots worth ₹271,200. Following a streamlined post-subscription process with share allotments scheduled for November 27, 2024, the company is set to mark its presence on the NSE SME platform by November 29, 2024. As this defence electronics innovator transitions to public markets, investors have a unique opportunity to participate in India's growing indigenous defence technology sector.
C2C Advanced Systems Limited IPO is an SME fundraise worth ₹99.07 crores comprising purely of a fresh issue with 219,600 shares reserved for the market maker Spread X Securities Private Limited and 1,249,200 shares worth ₹28.23 crore for anchor investors.
Out of the total net issue, Qualified Institutional Buyers (QIBs) will not be offered more than 50%, while Retailers and Non-Institutional Investors (NIIs) or High Net-Worth Individuals (HNIs) will not be offered less than 35% and 15%, respectively. The IPO will be available for subscription from November 22, 2024, to November 26, 2024, providing an opportunity for investors looking to get a foothold in the defence electronics market.
| C2C Advanced Systems IPO Date | November 21,2 2024 - November 26, 2024 |
| Price Band | ₹214 to ₹226 per share |
| Face Value | ₹10 per share |
| Lot Size | 600 shares |
| Issue Type | Book-built Issue IPO |
| Fresh Issue Size | 4,383,600 shares worth ₹99.07 crores |
| Total Issue Size | 4,383,600 shares worth ₹99.07 crores |
| Listing at | NSE SME |
| Market Maker Portion | 219,600 - Spread X Securities Pvt Ltd |
| Share Holding Post Issue | 16,641,168 |
| Share Holding Pre Issue | 12,257,568 |
The C2C Advanced Systems Limited IPO opens for subscription on November 22, 2024, and closes on November 26, 2024, with allotment scheduled for November 27, 2024.
| IPO Open Date | November 22, 2024 (Friday) |
| IPO Close Date | November 26, 2024 (Tuesday) |
| Basis of Allotment | November 27, 2024 (Wednesday) |
| Initiation of Refunds | November 28, 2024 (Thursday) |
| Credit of Shares to Demat Account | November 28, 2024 (Thursday) |
| Listing Date on NSE SME | November 29, 2024 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on November 26, 2024 |
C2C Advanced Systems Limited, established in 2018, has emerged as a leading vertically integrated defence electronics solutions provider in India's indigenous defence sector. The company excels in developing C4I systems for situational awareness, AI/ML based analytics, and enterprise integration of real-time data from IIOT. Their comprehensive product portfolio includes sophisticated Combat Management Systems, Anti-Drone Command and Control Systems, and Integrated Platform Management Systems.
The company's digital transformation strategy is built on four key pillars: Virtual Supply Chain for real-time sensor data analytics, Virtual Logistics utilising COTS electronic boards for harsh environments, Virtual Maintenance for situational awareness systems, and AI/ML technology integration across all offerings. With 190 employees as of October 2024, the company maintains strong R&D capabilities and focuses on innovation in defence applications. Their strategic positioning aligns well with government initiatives like "Atmanirbhar Bharat" and "Make in India," while maintaining strong relationships with a diverse global customer base under experienced management leadership.
C2C Advanced Systems Limited plans to strategically deploy its net issue proceeds across several key initiatives: enhancing its operational infrastructure through capital expenditure on hardware and software assets, including the upgrade of its Bengaluru Experience Centre and establishment of a Training Centre, while also setting up a new Experience Centre in Dubai. The funds will additionally support fit-out requirements for new premises in both Bengaluru and Dubai, cover security deposit payments for the Bengaluru location, meet working capital needs, and address general corporate purposes, collectively supporting the company's expansion and operational enhancement goals.
The C2C Advanced Systems Limited IPO is in the limelight as the company reportedly saw an annual rise of 412% in its revenue and 327% yearly increase in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of September 30, 2024, the key performance indicators reflect the company's financial health, with a Debt-to-Equity ratio of 0.15, indicating that the company is not very dependent on debt financing. The RoNW stands at 11.29% and the PAT Margin was 22.51%. The Price to Book Value was 3.62. The company’s market capitalisation is ₹376.09 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 4,324.97 | 4,129.82 | 806.73 | 34.79 |
| Assets | 11,058.01 | 8,583.51 | 1,849.78 | 903.18 |
| Net Worth | 8,618.72 | 7,645.73 | 252.14 | -136.57 |
| Profit After Tax | 972.99 | 1,227.69 | 287.52 | -238.21 |
| Reserves & Surplus | - | 6,864.52 | 96.69 | - |
| Total Borrowing | 1,329.02 | - | 944.74 | 554.77 |
Amount in ₹ crores
The pre-IPO EPS is at ₹10.02 while the post-IPO EPS will be ₹11.69. Similarly, the pre-IPO Price to Earnings ratio is 22.56 and will become 19.33 post-IPO.
C2C Advanced Systems Limited demonstrates formidable market positioning through its extensive portfolio of over 100 defence products and proven expertise in advanced technologies including C4I systems, AI/ML, IIOT, and FPGA designs. Their innovation capabilities are anchored by a robust R&D infrastructure, centred at their Bengaluru Experience Centre, which has enabled successful deployments like the new-generation Combat Management Systems for the Malaysian Navy.
The company's strategic alignment with India's defence indigenization initiatives, particularly "Atmanirbhar Bharat" and "Make in India," positions it advantageously in the growing domestic defence sector. Their global reach, evidenced by strong relationships with customers across India, USA, UK, and Malaysia, combined with an experienced management team, provides a solid foundation for sustained growth in the defence electronics domain.
C2C Advanced Systems Limited faces significant revenue concentration risks, with top 10 customers contributing 99.05% of FY2024 revenue and heavy dependence on government contracts. The company's vulnerability to changes in government defence priorities and procurement patterns could substantially impact their business prospects. Their working capital management presents notable challenges, evidenced by extended trade receivable days (reaching 4,085 days in 2023) and negative operational cash flows.
The company's financial structure raises concerns about liquidity management and operational flexibility, with substantial working capital requirements and reliance on unsecured promoter loans. The high levels of trade receivables and payables, coupled with negative cash flows from operations in recent years, indicate potential challenges in maintaining stable cash flows and managing day-to-day operations. This financial position could constrain their ability to pursue growth opportunities and maintain operational stability.
Should you invest in the C2C Advanced Systems IPO?
Participating in C2C Advanced Systems Limited’s initial public offering (IPO) could give investors an opportunity to be part of the company's growth in the defence electronics sector. However, potential investors should thoroughly evaluate key factors such as the company’s operational performance, financial stability, industry trends, and growth strategy. It's also important to align the investment with personal goals and risk tolerance. To make an informed decision, investors are advised to review the offer document and consult with a financial advisor if necessary before participating in the IPO.
What is the C2C Advanced Systems Limited IPO?
The C2C Advanced Systems Limited IPO is an NSE SME offering consisting of 4,383,600 equity shares with a face value of ₹10, aiming to raise to ₹99.07 crore. The price band has been set between ₹214 to ₹226, with a minimum order quantity of 600 shares. This IPO will be open for subscription from November 22, 2024, to November 26, 2024. Mark Corporate Advisors Private Limited and Beeline Capital Advisors Private Limited are the book-running lead managers, Link Intime India Private Limited is the registrar while Spread X Securities Private Limited is the market maker.
When will the C2C Advanced Systems Limited IPO open?
The C2C Advanced Systems Limited IPO will open for subscription on November 22, 2024, and will close on November 26, 2024.
When is the C2C Advanced Systems Limited IPO listing date?
The tentative listing date for the C2C Advanced Systems Limited IPO is Friday, November 29, 2024.
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