C2C Advanced Systems IPO Subscribed 116.6 Times On Final Day Despite Listing Postponement

The initial public offering launched by C2C Advanced Systems Ltd. closed on Tuesday with solid demand, even as the company's listing has been postponed after a regulatory intervention.

The IPO was subscribed 116.64 times on its final day of bidding. This compared to the 108 times subscription recorded on Monday, ahead of the company's decision to postpone the listing.

C2C Advanced Systems IPO comprised a fresh issue of 43.84 lakh shares, as the company aimed to raise Rs 99.07 crore. This makes it one of the biggest issues in the small and medium enterprise segment this year.

The price band for the SME IPO was fixed in the range of Rs 214 to Rs 226 per share.

The post-IPO listing of C2C Advanced Systems was earlier tentatively expected on Nov. 29. The stock was to be listed on the NSE SME platform Emerge. However, the listing has been deferred after the Securities and Exchange Board of India asked the company to appoint independent auditors and obtain a report of its financial accounts.

Following the regulatory intervention, the company offered its IPO investors to withdraw their application before allocating the shares. The deadline to withdraw applications is 3 p.m. on Nov. 28.

Also Read: C2C Advanced Systems IPO Listing Postponed: Here's Why?

The grey market premium or GMP on C2C Advanced Systems IPO fell to Rs 100 as of 6:25 p.m. on Nov. 26, according to the InvestorGain. The GMP was high as Rs 245 on Nov. 24.

The GMP of Rs 100 indicates an estimated listing price of Rs 326 per share, which marks a gain of 44.25% as against the upper end of the IPO price.

However, GMP is not an official price quote for the stock and is based on speculation.

C2C Advanced Systems is a provider of defence electronics solutions. The company has design capabilities across the entire spectrum of strategic defence solutions such as processors, radars and embedded software and firmware.

The company is a provider of customised software and software-enabled systems which control mission critical defence applications for military and security apparatus in India and globally.  It generates revenue from the sale of proprietary technologies and services.

Use Of Proceeds

The company plans to use the money raised via the public issue for funding the purchase of fixed assets for its existing operations. The proceeds will also be used for creating fit-outs at the company’s premises in Bengaluru and Dubai.

A portion of the proceeds will also be used for paying the security deposit at the new premises of the company located in Bengaluru. The proceeds will also aid in funding working capital requirements and general corporate purposes.

Financials

C2C Advanced Systems revenue stood at Rs 41.29 crore in fiscal 2024, a 412% year-on-year rise from Rs 8.06 crore in the previous fiscal. The company’s net profit also increased over 327% to Rs 12.27 crore from Rs 2.87 crore in fiscal 2023.

In the September quarter of the current fiscal, the company's revenue stood at Rs 43.24 crore and net profit at Rs 9.72 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.