C2C Advanced Systems IPO: A Comprehensive Overview

C2C Advanced Systems Limited, a leading player in the defense technology industry, is launching its IPO under the SME category. Incorporated in 2018, the company specializes in providing cutting-edge solutions for defense applications, including C4I systems, AI/ML-based big data analytics, enterprise integration, and embedded/FPGA design. This IPO presents a promising opportunity for investors looking to diversify their portfolio with a focus on the rapidly growing defense technology sector.

C2C Advanced Systems IPO Details

The IPO is set to open on November 22, 2024, and close on November 26, 2024. The issue size stands at ₹99.07 crore, with a total of 4,383,600 shares offered through a book-built issue. The price range is between ₹214 and ₹226 per share. Investors can apply for the IPO in lots, with a minimum lot size of 600 shares. The shares are expected to list on NSE SME on November 29, 2024.

Company Highlights

C2C Advanced Systems focuses on indigenously developed defense products, supporting the “Atmanirbhar Bharat” initiative. The company’s innovative offerings include:

1. Virtual Supply Chain: Real-time software solutions integrating data from various sensors.

2. Virtual Logistics: Subsystems designed for harsh environmental conditions.

3. Virtual Maintenance: Real-time data extraction systems for enhanced situational awareness.

4. AI/ML Integration: Advanced analytics for standalone product development.

Their product portfolio features Combat Management Systems, Anti-Drone Command and Control Systems, and more, catering to both domestic and global markets.

Financial Performance

The company has demonstrated impressive growth in recent years. As of March 31, 2024:

• Revenue: ₹4,129.82 lakh (412% growth YoY).

• PAT (Profit After Tax): ₹1,227.69 lakh (327% growth YoY).

• Net Worth: ₹8,618.72 lakh, showcasing robust financial health.

This financial growth underscores the company’s ability to leverage its innovative solutions and secure significant contracts, particularly in the defense sector.

Objectives of the Issue

The funds raised through the IPO will be utilized for:

• Setting up a training center in Bengaluru.

• Upgrading existing facilities and establishing a new Experience Center in Dubai.

• Meeting working capital requirements.

• Acquiring fixed assets to enhance operational efficiency.

Strengths and Risks

Strengths:

• Comprehensive R&D capabilities.

• Diverse and innovative product portfolio.

• Alignment with government initiatives like “Make in India.”

• Strong client relationships in domestic and global markets.

Risks:

• Dependence on government contracts.

• High trade receivables and payables, impacting liquidity.

• Revenue concentration from a limited client base.

Why Invest in C2C Advanced Systems IPO?

The defense technology sector is poised for significant growth, driven by rising demand for advanced solutions and government initiatives promoting domestic manufacturing. With its strong financial performance and innovative offerings, C2C Advanced Systems Limited is well-positioned to benefit from these trends, making this IPO an attractive investment opportunity.

Conclusion

C2C Advanced Systems IPO is an excellent prospect for investors seeking exposure to the defense and technology sectors. While challenges like client dependency exist, the company’s robust financials and focus on innovation provide confidence in its growth potential. For further guidance and expert insights into IPO investments, connect with Finowings Training Academy, your trusted partner in mastering financial strategies. Open your Demat account today and seize this opportunity!