The SME initial public offering (IPO) of ATC Energies System opened for public bidding on Tuesday and had an overall subscription of 53% as of 06:00 PM on the first day of bidding. The company aims to raise Rs 63.76 crore and the stock will be listed on the NSE SME platform.
The retail portion of the issue was subscribed by 78%, while the issue was subscribed by 21% in the non-institutional investors category on the first day of bidding. Meanwhile, the qualified institutional buyers had subscribed by 76% of the allotted issue.
The issue comprises a fresh issuance of 43.24 lakh shares worth Rs 51.02 crore and an offer for sale (OFS) of 10.80 lakh shares aggregating to Rs 12.74 crore.
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ATC Energies System IPO’s GMP on Day 1
Ahead of listing, the company’s shares were trading with a GMP of Rs 21 in the unlisted market on Tuesday, indicating a premium of 17.8% over the upper end of the IPO price band of Rs 118.
Price band for the IPO
The price band for ATC Energies’ IPO has been set at Rs 112 to Rs 118 per share.
About ATC Energies System IPO
The IPO comprises up to 54,03,600 equity shares of face value Rs 10 each, which includes a fresh issue of 43,23,600 equity shares and an offer for sale of 10,80,000 equity shares.
The lot size is 1,200 equity shares and in multiples thereof with minimum order quantity of 1 lot.
The maximum subscription amount for retail investors is Rs 2 lakh.
The maximum bid quantity for QIB Investors is 42,09,600 equity shares in multiple of 1,200 equity shares and 35,92,800 equity shares for NIB investors’ category.
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About company
Formerly known as ATC Energies System Private Limited, the company is engaged in the energy sector. Incorporated on September 2, 2020, the company has quickly expanded its operations, leveraging technological advancements to provide efficient energy solutions. ATC Energies System is a manufacturer and assembler of advanced lithium-ion battery solutions and the Maharashtra-based company aims to establish itself as a key player in the industry. The company’s conversion into a public limited entity was on May 1, 2024.
ATC Energies Promoters
The company is promoted by Sandeep Gangabishan Bajoria.
Proceeds from the IPO
The net proceeds from the IPO will be used for multiple purposes. A portion will go towards the repayment and pre-payment, in full, of borrowings availed for the purchase of the Noida factory, including land and building.
Funds will also be allocated to capital expenditure requirements for refurbishment, civil work, and upgrades at the Noida factory. Additionally, the company will use part of the proceeds for IT infrastructure upgrades at both the Noida and Vasai factories, as well as at the registered office.
A portion of the proceeds will also be used to meet the company’s working capital requirements. The remaining funds will be utilized for general corporate purposes.
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Key dates for ATC Energies IPO
The Anchor Book for the ATC Energies System IPO will open on March 24, 2025. The IPO will open for public subscription on March 25 and will close on March 27. The share allotment may take place on March 28 and the tentative listing of shares can take place on April 2.
ATC Energies financial performance
In FY24, the company achieved a revenue of Rs 5,120.37 lakh, EBITDA of Rs 1,516.35 lakh, and a PAT of Rs 1,089.16 lakh. As of September 2024, the company achieved a revenue of Rs 2,249.41 lakh, EBITDA of Rs 817.82 lakh and a PAT of Rs 577.15 lakh.
