ATC Energies System Limited's shares opened at ₹107 apiece on the NSE SME platform on April 2, 2025, lower than its Initial Public Offering (IPO) issue price of ₹118 per share. Shortly after listing, the stock fell to ₹101.6, hitting its 5% lower circuit limit. A total of 3.74 lakh shares were traded, with a turnover of ₹4 crores. The company's market capitalisation stood at ₹207.25 crores at the time of listing.
The company's IPO, worth ₹63.76 crores, was open for bidding from March 25, 2025, to March 27, 2025. The issue saw a subscription of 1.61 times, receiving bids for over 67.8 lakh shares against the 42.09 lakh shares available. The IPO comprised both a fresh issue and an offer for sale, with the share price set at ₹118 apiece and a lot size of 1,200.
Company financial performance
For the first half of FY25, ATC Energies System reported revenue of ₹22.57 crores and a Profit After Tax (PAT) of ₹5.77 crores. In FY24, the company recorded revenue of ₹51.51 crores, significantly up from ₹33.22 crores in FY23. Net profit rose to ₹10.89 crores in FY24, compared to ₹7.76 crores in FY23.
Planned utilisation of IPO proceeds
ATC Energies System plans to use the IPO funds primarily for loan repayment and expansion. According to its Red Herring Prospectus (RHP), ₹9.5 crores is allocated for debt repayment related to the Noida factory purchase. Additionally, ₹6.7 crores will fund capital expenditure for factory refurbishment, civil works, and upgrades.
A further ₹7.5 crores is earmarked for IT upgrades at the Noida and Vasai factories, along with the registered office. Another ₹9.5 crores will be used for working capital needs, with the remaining funds set aside for general corporate purposes. Investors who want to apply for the IPO online should consider these factors before making their decisions.
Market reaction and investor outlook
Market analysts noted that the weak debut reflects cautious investor sentiment towards SME listings. While the company's financials show growth, its stock performance on listing day indicates subdued market confidence. As of 12:15 AM on April 2, 2025, the stock was trading at ₹101.65 apiece on NSE. Analysts advise investors to track future earnings and operational efficiency before making further investments.
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