C2C Advanced Systems IPO sees strong demand; 9x subscribed, GMP zooms 108%

C2C Advanced Systems' unlisted shares were trading at a premium of Rs 245 against the upper price band of Rs 226, reflecting a GMP of 108.41 per cent, on Friday

The initial public offering (IPO) of C2C Advanced Systems has seen strong demand from investors on the first day of its opening for public subscription. The C2C Advanced Systems IPO has so far received bids for 2,86,74,600 shares against the 31,34,400 shares offered, resulting in an oversubscription of 9.15 times as of around 11:58 AM on Friday, according to data from the NSE.

 

The subscription status also mirrors the trends in the grey market, as the unlisted shares of C2C Advanced Systems continue to command a solid premium in the unofficial markets. Sources tracking grey market activities revealed that C2C Advanced Systems unlisted shares were trading at a premium of Rs 245 against the upper price band of Rs 226, reflecting a GMP of 108.41 per cent.

 

 

At the upper end, the company seeks to raise Rs 99.07 crore from the public offering, which is available at a price band of Rs 214-216, with a lot size of 600 shares. A retail investor would need a minimum of Rs 135,600 to bid for one lot of 600 shares. The company has announced that it has already raised Rs 28.23 crore from anchor investors as of the bidding concluded on November 21, 2024.

 

The company proposes to utilise the proceeds of the net issue for funding capital expenditure towards the purchase of fixed assets (both hardware and software) for its existing operations, including the upgradation of the existing Experience Centre and the setup of a Training Centre in Bengaluru. It also plans to establish an Experience Centre in Dubai.

 

C2C Advanced Systems further intends to utilise the proceeds for fit-outs at the new premises in both Bengaluru and Dubai, as well as for the payment of the security deposit for the new premises in Bengaluru, Karnataka, India. The remaining proceeds will fund the working capital requirements of the company and expenditures towards general corporate purposes.

 

The subscription window for the C2C Advanced Systems IPO is slated to conclude on Tuesday, November 26, 2024. Following that, the basis of allotment is expected to be finalised on Wednesday, November 27, 2024, and shares will be credited to demat accounts on Thursday, November 28, 2024.

 

C2C Advanced Systems shares are expected to list on the NSE SME with the tentative listing date set for Friday, November 29, 2024.

 

Link Intime India is the registrar for the C2C Advanced Systems IPO, while the book-running lead managers for the public issue include Mark Corporate Advisors and Beeline Capital Advisors.

 

C2C Advanced Systems is a defence electronics solutions provider in India, specialising in indigenously developed defence products. With a comprehensive portfolio, the company supports the entire range of defence platforms, spanning air and sea. Its core expertise encompasses the design and development of hardware, software, firmware, and mechanical systems, as well as prototype design, testing, validation, and engineering services, as outlined in the Red Herring Prospectus (RHP).