ATC Energies System Limited opens its IPO for subscription on March 25th 2025 and ends on March 27th 2025. It is a 100% book-built issue with a total issue size of 54,03,600 equity shares, each with a price band of Rs. 112 to 118.
The IPO is set to go public on April 2nd 2025 on the SME platform of the National Stock Exchange.
The company was formed in 2019 and is in the business that deals with the production of efficient and affordable lithium-ion batteries (batteries with electrochemical energy storage charged by lithium ions). Initially, it only manufactured mini-size batteries [up to 100Wh] that catered to the banking industry but over time has developed to manufacture batteries of all sizes i.e. large [above 2,000 Wh], medium [751-2,000 Wh], small [101-750 Wh] for all kinds of products like Electric Vehicles, Drones, Energy Storage Systems, Robotics, etc. It has two factories one in Vasai, Thane, and the other in Noida, UP. It has a strong team of engineers, researchers, and promoters and further aims to enhance its product portfolio and market presence in the industry.
Details Of ATC Energies System Limited IPO
Objectives of ATC Energies System Limited IPO
The company with the help of this IPO proposes to utilize the net proceeds for civil and IT upgradation for its Noida and Vasai factories, repayment of its borrowings, meet working capital, and make strategic business developments.
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Financial Performance of ATC Energies System Limited
The table below (in lakhs) stipulates the restated Financial Information of the company over the last 3 fiscal years and up-till September 30, 2024.
Particulars | For the year ended September 30, 2024 | 31.03.2024 | 31.03.2023 | 31.03.2022 |
Equity Share Capital | 1,606.50 | 1,606.50 | 255.00 | 255.00 |
Total Net Worth | 3,887.27 | 3,310.13 | 2,220.97 | 1,445.41 |
Revenue from operations | 2,257.01 | 5,151.40 | 3,322.44 | 3,651.89 |
Profit After Tax | 577.15 | 1,089.16 | 775.57 | 1,186.14 |
Industry Outlook
The Lithium-ion battery market is experiencing a remarkable surge in the market due to its low maintenance, high power, and sustainability benefits. These rechargeable batteries are used in portable electronic products like mobile phones, laptops, computers, etc., and are especially incorporated in EV automobiles.
The demand for Lithium-ion batteries is expected to rapidly growth driven by advancements in battery technology, supportive government policies, and increasing awareness of environmental sustainability.
The Indian government has also incorporated necessary steps like the National Electric Mobility Mission Plan (NEMMP) aimed at achieve substantial electrification of the Indian automotive sector, initiated Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme for more e-transportation, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Production Linked Incentive (PLI) scheme like the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage, etc.
In 2023, the global lithium-ion battery market was estimated at USD 64.8 billion and is projected to grow at a CAGR of 17.6% reaching over USD 146 billion by 2028.
In India, the lithium-ion battery market which was valued at around USD 2 billion is experiencing an accelerated scenario and is expected to grow to USD 6 billion by 2026 and further to USD 15 billion by 2030.
Strengths and Risks of ATC Energies System Limited
Strength:
IPO Subscription Details
The IPO is a book-built issue that offers a fresh issue size of 43,23,600 and an offer for sale of 10,80,00 equity shares, each with a face value of Rs. 10. The bidding price ranges from Rs. 112 - 118 per share for a lot size of 1200. The IPO is set to go public on April 2nd 2025 on the Emerge platform of the National Stock Exchange.
Expert Recommendations
The demand for Lithium-ion batteries is expected to rapidly growth driven by advancements in battery technology, supportive government policies, and increasing awareness of environmental sustainability. The company has also shown healthy financial growth over the years and additionally, the industry the company is vested in also has potential growth for the long term.
However, the company is also subject to certain risks and competition from many companies which the investors should carefully analyze before investing.
Key Takeaways
The company with the help of this Initial Public Offering (IPO) aims to revamp and upgrade its factories located in Noida and Vasai and for general corporate purposes.
It has shown healthy profits and a strong business portfolio but is also subject to certain risks that investors should outline before investing.
Frequently Asked Questions: ATC Energies System Limited
1. When is the ATC Energies System Limited IPO being listed?
The IPO is set to go public on April 2nd 2025.
2. Is the ATC Energies System Limited IPO fairly Priced?
Based on the average EPS of 6.23, The price/earning ratio at the lower end of the floor price is 17.98 and 18.94 at the higher end of the price band. The bid price ranges from Rs. 112-118 per share.
3. Where else can we get more information about the ATC Energies System Limited IPO?
You can get more information about the industry and IPO on the NSE website and on following important resources.
1. https://www.ibef.org/blogs/lithium-ion-battery-lib-manufacturing-industry-in-india
2. https://www.atclithiumbatteries.com/
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