ATC Energies System Limited is coming up with an IPO consisting of a fresh issue of 43,23,600 shares worth INR 51.02 crores and an offer to sell 10,80,000 existing shares worth INR 12.74 crores. The company aims to repay borrowings, civil works and refurbishment of the Noida factory, IT upgradation of the Noida and Vasai factories, fund the working capital requirement, and support general corporate purposes.     

ATC Energies IPO – Important Dates

ATC Energies System Limited IPO  – Company Profile

ATC Energies Systems produces and supplies lithium-ion batteries. They provide efficient and low-cost lithium and li-ion batteries by developing full-scale vertically integrated energy storage solutions for various industries and end users such as banking, automobiles, etc. 

The factories are located at Vasai, Thane and Noida, NCR, with the latest machines and technology comprising an in-house integrated development and assembling system.

The company commenced the business producing mini-size batteries [up to 100Wh] primarily catering to the Banking Industry for POS and ATM Machines. Over the years, they have expanded their product portfolio into manufacturing batteries of all sizes, i.e. large [above 2,000 Wh], medium [751-2,000 Wh], small [101-750 Wh] and mini for a wide range of industries and other end-use applications. 

ATC Energies System Ltd IPO Fundamental Analysis 

• Revenue Trend: The revenue increased from ₹3,313.54 lakhs in March 2023 to ₹5,120.37 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 2,249.41 lakh. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) increased from ₹775.57 lakh in March 2023 to ₹1,089.16 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹ 577.15 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹ 4.83 in March 2023 to ₹6.74 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹3.59. 
• Return on Net Worth (RoNW): The RoNW has decreased from 42.31% to 39.38%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

Question 1/3

Write question A here

Submit the form, and get to know how you scored!!!

Phone *

Email *

Open Now

ATC Energies IPO Financial Analysis

ATC Energies System Limited IPO  Peer Comparison

ATC Energies System Limited has a Face Value of ₹10 per share, an EPS of ₹6.78, a RoNW of 39.38%, and an NAV of ₹20.60. It outperforms Eveready and High Energy Batteries in RoNW but lacks a disclosed P/E ratio.

ATC Energies System Ltd IPO Objective

ATC Energies System Limited plans to utilise INR 9.52 crores for debt repayment, INR 6.72 crores for Noida factory refurbishment, INR 7.46 crores for IT upgrades, and the remaining for general corporate purposes.

1. Repayment of borrowings: The company intends to utilise INR 9.52 crores from the Net Proceeds for partial or complete repayment of borrowings, reducing debt servicing costs, improving the debt-to-equity ratio, and enhancing future growth and expansion opportunities. 

2. Capital expenditure towards refurbishment, civil and upgradation works at Noida factory: The company intends to invest towards refurbishing, civil and upgradation works at its Noida Factory. The Company proposes to use part of Net Proceeds to the extent of up to INR 6.72 crores to meet this capital expenditure. 

3. Capital expenditure towards IT Upgradation at Noida and Vasai factory: Modernisation of workstations will improve employee efficiency and lay the platform for future expansion and stability. The company proposes to use part of Net Proceeds to the extent of up to INR 7.46 crores to meet this capital expenditure. 

4. General Corporate Purposes: The company will deploy funds for general corporate purposes, including strategic initiatives, partnerships, joint ventures, acquisitions, meeting business exigencies, facility renovation, brand promotion, liability repayment, and other operational needs to support growth and sustainability.   

ATC Energies IPO Risks And Challenges

ATC Energies System Limited faces risks from supply chain disruptions due to reliance on critical raw materials, high dependence on promoter group customers, and significant exposure to Chinese imports, impacting profitability and business stability.

1. The lithium battery industry is vulnerable to supply chain disruptions caused by its reliance on a few critical raw materials like lithium, nickel, cobalt, graphite, and manganese, which, if disrupted, can lead to shortages and higher costs and adversely impact profitability.

2. The company is dependent on and derives a substantial portion of its revenue from two customers, namely M/s Agarwal Trading Company and M/s Hind Industries – both categorised as “Promoter Group entities”. A reduction in orders from these customers could have a material adverse effect on the business. 

3. Heavy dependence on raw material imports from China poses a substantial risk for the company, as disruptions due to political tensions or trade disputes can lead to supply chain interruptions, quality control issues, and heightened competition, which could adversely affect the business. 

ATC Energies System Ltd IPO – Industry & Market Potential

India’s annual Lithium-ion battery demand is estimated to have grown from 3GWh in 2020 to ~11 GWh in 2022, while in 2023, it is estimated to have accelerated further to nearly 17 GWh in 2023. 

Previously, the biggest disadvantage of lithium-ion adoption was its higher price. However, the price of Li-ion cells & battery packs has been plummeting since 2010 on the back of incremental innovation in battery chemistry as well as economies of scale due to a pick-up in electric vehicle sales. The average price for Li-ion battery packs across all sectors, which was at USD 780 per kWh in 2013, dropped to USD 139 per kWh in 2023. 

ATC Energies System Limited IPO  – Type of Offer

ATC Energies System Limited’s IPO includes a fresh issue of INR 51.02 crores and an offer for sale of INR 12.74 crores to fund expansion, upgrades, and debt repayment.

1. Fresh Issue: The company will issue 43,23,600 new shares to raise capital, aiming to collect INR 51.02 crores. The company intends to utilise the proceeds for repaying borrowings, civil works and refurbishment of the Noida factory, IT upgradation of the Noida and Vasai factories, funding working capital requirements, and general corporate purposes.

2. Offer for sale: ATC Energies System Limited is offering to sell 10,80,000 existing shares worth INR 12.74 crores. The following are the details of the existing shareholder, who is also the promoter selling the shares:

ATC Energies IPO Offer Size

The offer size of ATC Energies System Limited’s IPO comprises a fresh issue of 43,23,600 shares worth INR 51.02 crores and an offer for sale of 10,80,000 shares worth INR 12.74 crores. The company intends to utilise the proceeds for repaying borrowings, civil works and refurbishment of the Noida factory, IT upgradation of the Noida and Vasai factories, funding working capital requirements, and general corporate purposes.

ATC Energies System Limited IPO  Allotment Structure

ATC Energies System Limited’s allocation will be as follows: 30% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII), according to SEBI regulations. 2,71,200 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 30% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 2,71,200 shares, are reserved for market makers. 

How to apply for the ATC Energies System IPO?

To apply for the ATC Energies System Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the ATC Energies System Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the ATC Energies System Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check ATC Energies System IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the ATC Energies System Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the ATC Energies System Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the ATC Energies System Limited IPO:

● Registrar’s Website: Visit the website of KFIN Technologies Limited, the registrar of the ATC Energies System Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME) Platform. You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

ATC Energies System Ltd IPO Offer Registrar

The registrar for the ATC Energies System Limited IPO is KFIN Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFIN Technologies Limited

Selenium Tower B, Plot No – 31 & 32,

Gachibowli, Financial District, Nanakramguda,

Serilingampally, Hyderabad– 500 032,

E-mail: aesl.ipo@kfintech.com 

Website: www.kfintech.com 

ATC Energies System SME IPO – FAQs