C2C Advanced Systems IPO: Overview, Date & GMP

C2C Advanced Systems IPO-Complete Overview

C2C Advanced Systems IPO under the SME IPO category is a book-built issue of Rs.99.07 crore by C2C Advanced Systems Limited (formerly C2C-DB Systems Private Limited), incorporated in 2018. The company caters to the India-based indigenously developed defense products industry. The company specializes in core competence activities such as effective situational awareness and decision support through C4I systems, AI/ML-based big data analytics, enterprise integration of real-time data from IIOT, and embedded/FPGA design

C2C Advanced Systems Company Details

Four main services make up the business model for digital transformation on the part of the company:

1. Virtual Supply Chain: The company provides software development based on real-time and continuous data provided by various sensors that generate usable data that can be acted upon immediately.
2. Virtual logistics: Commercial off-the-shelf electronic boards used by the company to combine and deliver in an engineered enclosure that is capable of handling harsh environmental conditions (subsystems).
3. Virtual Maintenance: The company integrates many subsystems for the delivery of systems that extract real-time data and create situational awareness for defense leadership to act upon the extracted data (systems).
4. AI/ML technologies in all offerings with stand-alone product development and engineering  

The company has products under the following categories, some of which are combat Management Systems, C4I Systems, Anti-Drone Command and Control Systems, Air Defence Subsystems, Integrated Platform Management Systems, and Integrated Vessel Management Systems.

This C2C Advanced Systems IPO date is on 22 November 2024, and its ‘initial public offering’ will end on 26 November 2024.

C2C Advanced Systems IPO Overview

The Rs.99.07 crore new SME IPO comprises a wholly fresh issue of 43.84 lac Shares. 

This upcoming IPO date is from November 22 to November 26, 2024. C2C Advanced Systems share price is Rs.214 to Rs.226 for each Share. 

The expected IPO listing date is Friday, 29 November 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 412% and PAT increased by 327% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Sales Breakdown  

(Amount in lac)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing of capital expenditures for the establishment of a training center in Bengaluru, the upgrade of the current Experience Center, the planned establishment of an Experience Center in Dubai, and the acquisition of fixed assets (hardware and software) for its ongoing operations.

• On account of the establishment expenses at the new offices in Dubai and Bengaluru.

• Suspension deposit payment for the new location in Bengaluru, Karnataka, India.

• For the working capital requirement of the company.

• To cover costs connected with ordinary operational activities.

 

 

Peers of C2C Advanced Systems Ltd.

 

Note:- The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The C2C Advanced IPO price is Rs.214 to Rs.226 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.15.85 from the last year, the resulting P/E ratio is 14.25x.

Considering the weighted EPS of Rs.10.70 for the last three years, the P/E ratio is 21.12x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

 

Comparison can not be made because we don't have the average PE of the industry.

IPO's Strengths

• Huge portfolio of products and solutions for Defense Applications.

• Comprehensive R&D abilities with a high emphasis on innovative strength.

• Very well placed to gain out of the "Atmanirbhar Bharat" and 'Make in India'
  initiatives undertaken by the Indian Government.

• A strong relationship with diverse and global customers.

• Well-experienced management team.

 

IPO’s Weaknesses

• A considerable portion of its earnings within the country is linked to contracts with the Government of India and its agencies, including defense public sector undertakings or other administrative Defence agencies. Changes in the order of importance of such needs based on prioritization by the government may negatively impact its business development opportunities.

• They generate a significant amount of revenue from a limited number of clients, and their probabilities are quite capped due to the adverse phenomena arising from such a client profile. Any loss of any of its large customers, currently facing an adverse trend or significant business decrement, in turn, would affect its operations financial condition results of operations, and prospects.

• The value of trade receivables as well as the value of trade payables have remained on the higher side in the last 2 financial years. Such high receivables and payables days can adversely affect the liquidity position of the business.

 

C2C Advanced Systems IPO GMP

IPO GMP today is Rs.220 as of 16 November 2024. With a price of Rs.226 per Share, the expected C2C Advanced Systems IPO listing price is Rs.446 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from November 22 to November 26, 2024, with allotment on November 27, refund initiation on November 28, and listing on November 29, 2024.

 

C2C Advanced Systems IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 4,383,600 Shares (Rs.99.07 Cr).

IPO Lot Details

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (600 Shares) amounting to Rs.1,35,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1200 Shares) amounting to Rs.2,71,200.

 

IPO Reservation (% of Net Issue)

Promoters And Management of C2C Advanced Systems Ltd.

• C2C Innovations Private Limited

• PVR Multimedia Private Limited

• Lakshmi Chandra

• Maya Chandra

• Subrahmanya Srinivasa Narendra Lanka

• Kuriyedath Ramesh

• Murtaza Ali Soomar

 

IPO Lead Managers

• Mark Corporate Advisors Private Limited

• Beeline Capital Advisors Pvt Ltd.
  
  

Dividend Policy

The company has not paid dividends in the last three FYs.

 

Conclusion

The C2C Advanced Systems IPO is a tempting investment opportunity considering the still expanding defense technology sector with New India's ambitious initiatives like "Make in India" giving considerable lift to the movement. The company boasts a great portfolio, decent topline growth, and management is in place. However, there is dependence on relatively few clients and government contracts; therefore, financials/market conditions will be important in the decision-making process.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.

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