What goes into building smarter systems for defense, security, and aerospace? Companies like C2C Advanced Systems lead the charge with their innovative platforms and global competitiveness. From combat management systems to digital transformation initiatives, they’re carving a unique space in cutting-edge technology.
With their Rs.99.07 crore IPO making headlines, let’s explore what sets them apart and why the buzz around C2C Advanced Systems is hard to ignore.
C2C Advance Systems IPO Details
| Offer Price | Rs.214 to Rs.226 per share |
| Face Value | Rs.10 per share |
| Opening Date | 22nd November 2024 |
| Closing Date | 26th November 2024 |
| Total Issue Size (in Shares) | 43,83,600 |
| Total Issue Size (in Rs.) | Rs.97.07 Crore |
| Issue Type | Book Built Issue IPO |
| Lot Size | 600 Shares |
| Listing at | NSE EMERGE (NSE SME) |
The C2C Advance Systems IPO is a fresh issue of 43.846 lakh shares. The allotment of shares is expected to be finalized on 27 November 2024, and the shares will tentatively be listed on 29 November 2024 on NSE EMERGE, a platform started by NSE SME. The platform offers emerging businesses a streamlined way to raise equity capital from a broad range of investors, helping them unlock value and scale.
C2C Advance Systems IPO Allotment
The C2C Advance Systems IPO issue is expected to raise Rs.97.07 crore, with Rs.2,19,600 shares reserved for the market maker. Market makers are brokers registered with the stock exchange who ensure the continuous buying and selling of securities at set prices. The remaining 41,64,000 shares make up the Net Issue. The Public and Net issues will represent 26.34% and 25.02% of the company’s post-issue equity capital, respectively.
The minimum lot size for the issue is 600 shares. Retail investors must invest at least ₹135,600, while HNI investors must apply for 1,200 shares (₹271,200). Mark Corporate Advisors Pvt. Ltd. and Beeline Capital Advisors Pvt. Ltd. are the lead managers for the C2C Advanced Systems IPO. Link Intime India Pvt. Ltd. is the registrar, and Spread X Securities is the market maker for the issue. The allotment proportions for the issue are as follows-
| Qualified Institutional Buyers (QIBs) | Not more than 50% of the net issue (20,82,000) |
| Non-Institutional Investors | Not less than 15% (6,24,600 shares) of the net issue |
| Retail Investors | Not less than 35% of the net issue (14,57,400) |
| Market Makers | 5% of the Issue Size |
Objectives Of The C2C Advance Systems IPO
The company plans to utilize the net proceeds from the IPO for various purposes, including purchasing fixed assets (hardware and software) for its current operations and Dubai Experience Centre (₹1,473.10 lakhs).
Additionally, ₹458.00 lakhs will be allocated towards fit-outs for its new Bengaluru premises and Dubai Experience Centre, ₹160.00 lakhs for a security deposit at the new Bengaluru premises, and ₹4,600.00 lakhs to meet its working capital requirements. Source: Company RHP
Grey Market Premium
The Grey Market Premium (GMP) for the C2C Advanced Systems SME IPO indicates strong demand before its listing. As of 22nd November 2024, the GMP stood at ₹245, reflecting an upward trend from ₹200 on 14th November, based on nine sessions of grey market activity.
This marks ₹200 as the lowest and ₹245 as the highest GMP recorded. With the current GMP of ₹245, the estimated listing price is ₹471 per share, representing a 108.41% premium over the IPO price of ₹226. Source: Live Mint
Company Overview
C2C Advanced Systems Limited, formerly C2C – DB Systems Private Limited, was founded in 2018. The company specializes in defense electronics, focusing on indigenously developed defense products in India. Its core strengths include C4I systems for situational awareness, AI/ML-based analytics, real-time data integration, and embedded/FPGA designs. C2C’s business model centers on four main services:
- Virtual Maintenance: Creating systems that integrate subsystems, providing real-time data for defense leaders to act upon.
- Virtual Logistics: Delivering systems with COTS electronic boards and custom engineering designed to survive harsh conditions.
- AI/ML Technology: Applying AI/ML in all products and as standalone solutions.
- Virtual Supply Chain: Developing software that turns real-time sensor data into actionable insights.
The company’s products include Combat Management Systems, C4I Systems, Anti-Drone Command Systems, Air Defense Subsystems, and Integrated Platform and Vessel Management Systems.
Financial Overview Of C2C Advance Systems Limited:
- Revenue Trend:
The company’s revenue has increased since its operating revenue of Rs.34.69 lakhs in FY2022. The operating income for the financial year ending March 2024 was Rs.41.05 crore.
2. Profit Trend:
The company’s net profit has risen since its loss of Rs.2.38 crore in FY2022. As of FY2024, it earned a net profit of Rs.12.39 crore.
Others:
As of FY2024, the company’s net worth stands at Rs.76.45 crore, which rose to Rs.86.18 crore as of the half-year period ending September 2024. Its Earnings per Share (EPS) was Rs.15.85, and the net asset value per equity share was Rs.62.38 for the same year (FY2024).
SWOT Analysis:
| STRENGTHS | WEAKNESSES |
| Technological Expertise: C2C Advance Systems possesses strong expertise in defense electronics and cutting-edge technologies like AI/ML. Focus on Indigenous Development: The company’s focus on indigenously developed defense products aligns with the government’s “Make in India” initiative. Diversified Product Portfolio: The company’s diverse product portfolio, from combat management systems to anti-drone systems, positions it for growth in various defense segments. Strong Financial Performance: The company has recently shown significant revenue and net profit growth. Government Support: The Indian government’s increasing focus on defense modernization and indigenization creates favorable market conditions. | Limited Market Presence: As a relatively new company, C2C Advance Systems may face challenges expanding its market presence and customer base. Dependency on Government Contracts: The company’s revenue may rely heavily on government contracts, subject to budgetary constraints and policy changes. Competition from Established Players: The defense industry is dominated by established players, both domestic and international, which can pose competition for C2C Advance Systems. |
| OPPORTUNITIES | THREATS |
| Growing Defense Budget: The Indian government’s increasing defense budget allows the company to secure new contracts. Emerging Technologies: AI, ML, and IoT advancements can be leveraged to develop innovative products and solutions. Global Expansion: The company can explore opportunities in international markets, particularly in countries with growing defense budgets. Joint Ventures and Partnerships: Collaborating with established players can help the company access new markets and technologies | Geopolitical Risks: Geopolitical tensions and conflicts can impact the demand for defense products and services. Economic Slowdown: An economic slowdown can affect government spending on defense and impact the company’s revenue. Regulatory Hurdles: Stringent regulatory requirements and compliance issues can hinder the company’s growth. Cybersecurity Threats: The company operates in a technology-intensive sector, making it vulnerable to cyberattacks and damaging its reputation and operations. |
Bottomline:
The company provides digital transformation systems and services with specialized features tailored to client needs. Its focus on critical product development and servicing allows it to maintain strong margins. The management is confident it can continue its success after completing its ongoing expansion. However, before considering the IPO, it’s important to research the company’s financials and industry factors thoroughly. Consulting a registered advisor can help you make the best decision for your portfolio.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
