ATC Energies IPO subscribed 73% on day 2 so far; check strengths, risks and financials

ATC Energies IPO: The NSE SME initial public offer of ATC Energies System Ltd has received a tepid response from investors, with the issue being subscribed 73% until 2:05 pm on Wednesday, the second day of bidding.

The company has fixed the price band at ₹112 to ₹118 per share. The lot size, or the minimum bid quantity to apply for the issue, has been set at 1,200 shares worth ₹₹1,34,400. High-net-worth individuals can bid for at least two lots or 2,400 shares, aggregating to ₹2,83,200.

ATC Energies IPO: Allotment and listing date

Bidding for the issue will close on March 27. The allotment of shares is expected to be finalised on March 28. ATC Energies System shares are scheduled to be listed on the NSE SME platform, Emerge, on April 2.

ATC Energies operates in the energy sector, providing energy products, solutions, and services. It produces and supplies low-cost lithium and Li-ion batteries for industries such as banking and automobiles.

ATC Energies IPO: Strengths

• ATC Energies System has a diversified product portfolio catering to various industries, offering an array of solutions.
• It has an experienced leadership and workforce team. Sandeep Gangabishan Bajoria, the company's promoter, has 25 years of experience as an entrepreneur.
• The company has demonstrated stable financial performance over the past few years.

ATC Energies IPO: Risks

• The lithium battery industry, which requires a variety of critical raw materials, is vulnerable to supply chain disruptions.
• The company does not have any long-term contracts with its suppliers, and an increase in cost or a shortfall of key raw materials could affect the business.
• For the financial year 2024, ATC Energies' top two customers contributed 57.2% to revenue from operations. A decline in orders from top customers could affect business and financial conditions.

ATC Energies financials

ATC Energies reported a 55% increase in its revenue from operations to ₹51.51 crore in the financial year 2023-24, compared to ₹33.22 crore in the previous fiscal.

Profit after tax climbed 40.3% to ₹10.89 crore in FY24 as against ₹7.76 crore in FY23.