C2C Advanced Systems Lists at 90% Premium, Hits Upper Circuit on NSE SME

C2C Advanced Systems Limited, established in 2018 and specialising in defence electronics solutions and C4I systems, made its market debut on Tuesday, 3rd December 2024, on the NSE SME platform, following a brief delay due to regulatory review.

C2C Advanced Systems  Listing Details

• Listing Time & Price: At market open, C2C Advanced Systems share price listed at ₹429.40 on NSE SME, marking a strong start despite recent regulatory scrutiny.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. C2C Advanced had set its IPO price band from ₹214 to ₹226 per share, with the final issue price being fixed at the upper end of ₹226.
• Percentage Change: By 10:09:17 AM IST, the stock hit the upper circuit at ₹450.85, extending its gains to 99.49% over the issue price.

First-Day Trading Performance

• Price Range: Hit a high of ₹450.85 and low of ₹429.40 in early trading, with VWAP at ₹443.16.
• Market Capitalisation: As of 10:09:17 AM IST, the company's market capitalisation stood at ₹750.27 crore.
• Trading Volume: The traded volume was 4.28 lakh shares with a traded value of ₹18.95 crore.

C2C Advanced Systems Market Sentiment and Analysis

• Market Reaction: Strong buying interest despite recent SEBI scrutiny, with buy orders for 81.75 lakh shares with no sellers.
• Subscription Rate: Despite withdrawal of 3.72 lakh applications, the IPO was oversubscribed by 125.35 times, with NIIs leading at 233.13 times subscription, followed by retail investors at 132.73 times, and QIBs at 31.61 times.
• Pre-listing Signals: Grey market premium had indicated a premium of ₹240 before listing.

C2C Advanced Systems Growth Drivers and Challenges 

Expected drivers of future performance:

• Strong R&D capabilities
• Broad defense product portfolio
• Government's Atmanirbhar Bharat push
• Experienced management team

Potential challenges:

• Recent regulatory scrutiny
• High dependence on defense sector
• Project execution risks
• Technology obsolescence risks

Utilisation of IPO Proceeds 

C2C Advanced plans to use the funds for:

• Experience Centre upgradation in Bengaluru
• New facility setup in Dubai
• Working capital requirements
• General corporate purposes

Financial Performance 

The company has shown strong growth:

• Revenue increased by 412% to ₹41.30 crore in FY2024 from ₹8.07 crore in FY2023
• Profit After Tax rose by 327% to ₹12.28 crore in FY2024 from ₹2.88 crore in FY2023
• H1 FY2025 showed revenue of ₹43.25 crore with PAT of ₹9.73 crore

As C2C Advanced begins its journey as a listed entity, market participants will closely monitor its ability to maintain growth trajectory post the regulatory review. The strong listing despite recent concerns suggests investor confidence in the company's long-term prospects in the defense technology sector.