By Vineet Kumar 
C2C Advanced Systems IPO Records Stellar 25x Subscription on Day 1, Backed by Robust Demand from Retail and NII Investors
C2C Advanced Systems, a defense electronics solutions provider, made a strong debut in the stock market as its initial public offering (IPO) recorded an impressive 25x subscription on the very first day, November 22. Retail investors and non-institutional investors (NIIs) led the charge, showing immense interest in the company’s maiden public issue.
The IPO offered 43.83 lakh equity shares priced at Rs 226 apiece, aiming to raise Rs 99.07 crore. By the end of the first day, bids had poured in for 7.73 crore shares, which is 24.68 times the IPO size of 31.34 lakh shares available for bidding.
Who’s Bidding Big?
Non-institutional investors took the spotlight, oversubscribing their reserved portion by a staggering 41.48 times. Retail investors weren’t far behind, with their quota being subscribed 26.4 times. Meanwhile, qualified institutional buyers (QIBs) showed measured enthusiasm, subscribing to half their allocated shares.
A Successful Anchor Investment
A day before the IPO opened, the New Delhi-based company secured Rs 28.23 crore through its anchor book, with prominent investors like Aarth AIF, Bengal Finance, J4S Venture Fund, Kingsman Wealth Fund, and NAV Capital picking up 12.49 lakh shares at the upper price band of Rs 226.
How Will C2C Use the IPO Funds?
C2C Advanced Systems, known for developing tailored software solutions for mission-critical defense applications, has ambitious plans for the IPO proceeds. Here’s a glimpse:
1. Hardware and Software Upgrades: The company will invest in state-of-the-art technology to enhance its current operations.
2. Global Expansion: A portion of the funds will be used to establish an Experience Centre in Dubai, allowing global defense clients to experience its cutting-edge solutions firsthand.
3. New Premises: The Bengaluru and Dubai offices will receive fit-outs, along with security deposits for the Bengaluru premises.
4. Working Capital and Corporate Needs: The remaining funds will support working capital requirements and general corporate expenses.
A Promising Opportunity in Defense
C2C Advanced Systems specializes in delivering innovative solutions that power military and security operations, from advanced software to systems managing mission-critical applications. For instance, imagine a defense radar system that relies on their customized software to detect and track threats with precision—a critical aspect of national security.
With the IPO closing on November 26, the company has already set the stage for a promising future. The enthusiastic response from investors not only reflects confidence in the business but also underscores the growing appeal of the defense technology sector in India and beyond.
