C2C Advanced Systems Share Price: Stock Turns Multibagger, Hits Upper Circuit On Listing Day

Shares of C2C Advanced Systems Ltd. closed on the National Stock Exchange on Tuesday at Rs 450.85 apiece, a 99.49% premium over the issue price of Rs 226.

C2C Advanced Systems Ltd. made a stellar debut on the NSE SME platform, Emerge, on Tuesday after days of delay. The stock listed at Rs 429.4 apiece on the NSE SME platform with a premium of 90% over the issue price of Rs 226 apiece.

After listing, shares of C2C Advanced Systems rallied up to 5% to hit the upper circuit limit at Rs 450.85 apiece. Following the listing, investors allotted a single lot of 600 shares would have made a profit of Rs 1,22,040 (Rs 203.4 x 600). However, the NSE price cap of 90% on SME IPO debuts meant that the returns were curtailed.

The listing performance of C2C Advanced System was in line with grey market expectations, where the vertically integrated defence electronics solutions provider's unlisted shares were trading at a premium of Rs 240 over the issue price before the listing. This reflected a grey market premium (GMP) of 106%.

The company plans to use the money raised via the public issue for funding the purchase of fixed assets (both hardware and software) for its existing operations. The proceeds will also be used for creating fit-outs at the company’s premises at both Bengaluru and Dubai.

A portion of the proceeds will be used for paying the security deposit at the new premises of the company located in Bengaluru, Karnataka, India. The proceeds will also be used to fund working capital requirements and general corporate purposes.

The C2C Advanced Systems IPO saw a strong response from investors, even after its allotment and listing got delayed following a directive from the SEBI asking the company to appoint independent auditors to review its financials.

Following the SEBI directive, the company gave bidders the option to withdraw their applications till November 29 and saw over 3.72 lakh applications being withdrawn. However, the issue still got a massive response.

The issue was subscribed 125.42 times during the bidding period. It was booked 233.48 times in the non-institutional investors category. Retail investors subscribed their portion by 132.73 times,while Qualified Institutional Buyers (QIBs) subscribed their quota by 31.61 times.

The company aims to raise Rs 99.1 crore through its public offering that comprised an entirely fresh issue of 43.8 lakh shares. C2C Advanced Systems' IPO price band was set between Rs 214 and Rs 226 per share.

C2C Advanced Systems Ltd. is a vertically integrated defence electronics solutions provider catering to the indigenously developed defence products industry in India. Based in New Delhi, the company was incorporated in 2018.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.