Ace Alpha Tech Limited is set to launch its Initial Public Offering (IPO), offering investors an opportunity to participate in a company specializing in customized trading solutions for the financial industry. Here’s a comprehensive look at the upcoming IPO
IPO Opening Date: June 26, 2025
IPO Closing Date: June 30, 2025
Total Issue Size: 46,70,400 Equity Shares (aggregating to ₹32.22 Crores)
Fresh Issue Portion: 35,48,400 Equity Shares (aggregating to ₹24.48 Crores)
Offer for Sale (OFS) Portion: 11,22,000 Equity Shares (aggregating to ₹7.74 Crores)
Price Band: ₹65 to ₹69 per share
Lot Size: 2,000 shares
Allocation for Different Investor Categories:
Market Maker Reservation: 2,64,000 Equity Shares (5.65% of Issue Size)
Qualified Institutional Buyers (QIBs): Not more than 50% of the Net Issue (22,02,000 Equity Shares, 44.59% of total shares offered)
Non-Institutional Investors (NIIs): Not less than 15% of the Net Issue (6,61,200 Equity Shares, 13.42% of total shares offered)
Retail Individual Investors (RIIs): Not less than 35% of the Net Issue (15,43,200 Equity Shares, 31.29% of total shares offered)
Anchor Investors: 13,20,000 Equity Shares (26.75% of total shares offered), raising ₹9.11 Crores
Lead Manager: Narnolia Financial Services Limited
Registrar: Skyline Financial Services Private Limited
Market Maker: S S Corporate Securities Limited
About the Company: ACE Alpha Tech Ltd.
Inception: The company was originally incorporated on October 8, 2012, as “DM Prime Square Research & Analytics Private Limited”.
Main Products/Services: Ace Alpha Tech Limited provides a comprehensive suite of customized solutions for traders, including algorithms, automated and semi-automated strategies, and risk management systems. Their services encompass Institutional Trading, Algo Strategies, Automated Trading Systems, Consultation Services, Technology Support, Annual Maintenance, and Licensing.
Operational Footprint: The company operates from its Registered Office in East Delhi, a Corporate Office in Noida, Uttar Pradesh, and a Branch Office in Mumbai, Maharashtra.
Promoters: The company is promoted by Mr. Gaurav Sharma and Arika Securities Private Limited.
Employee Strength: As part of its capital expenditure plans, the company aims to hire 60 new employees. The company has a team of 9 employees as of the DRHP date.
Financials
| Particulars | 9M FY 2025 (Dec 31, 2024) | FY 2024 (March 31, 2024) | FY 2023 (March 31, 2023) | FY 2022 (March 31, 2022) |
| Revenues (Rs. Cr) | 11.54 | 14.87 | 4.89 | 0.32 |
| Net Profit (Rs. Cr) | 8.47 | 10.65 | 3.32 | 0.13 |
| Net Profit Margin (%) | 73.36% | 71.64% | 67.92% | 42.04% |
•Market Cap: ₹ 121.15 Cr , Market Cap/Sales: 8.15x
Financial Observations: The company has demonstrated significant growth in both total income and net profit across the reported periods. There’s a notable increase in revenue from operations and a consistently high, even rising, EBITDA and PAT margin over the last three fiscal years and the latest nine-month period. This indicates strong operational efficiency and profitability.
Salient Points: ACE Alpha Tech Ltd.
Use of Funds: The net proceeds from the fresh issue will primarily be used for capital expenditure (₹12.50 Crores) and for unidentified acquisitions and general corporate purposes. The cumulative amount for acquisitions and general corporate purposes shall not exceed 35% of the total funds raised, with unidentified acquisitions capped at 25%.
Business Scenario: The company operates within a growing global IT and BPM sector, projected to reach USD 29,886.75 billion by 2033 with an 11% CAGR. India’s services sector is expected to remain robust, with service exports having the potential to hit US$1 trillion by 2030.
Focus on Major Services: The company is dedicated to providing comprehensive, customized, and institutional-grade algorithmic trading solutions, emphasizing API integration, risk management, and front-end trading software.
Revenue Split by Region: The company’s revenue is geographically concentrated, with Delhi (43.45% in 9M FY25) and Uttar Pradesh (29.68%) being major contributors. Other significant regions include Maharashtra, Rajasthan, and Gujarat. Exports currently contribute a minimal percentage (0.01% in FY24).
Revenue Split by Service Category: Customization Fees, Consultation Services, Technology Support and Annual Maintenance, and Licensing Fee are the primary revenue streams. Customization Fees have shown considerable growth.
Expansion Planned: The company intends to pursue unidentified acquisitions for further business expansion and setting up. They also plan to leverage market skills and relationships to foster long-term business relationships and expand capabilities. Funds are allocated for constructing a server facility and expanding the workforce.
Major Clients: A substantial portion of the company’s revenue is derived from a limited number of customers, with the top 5 customers accounting for 62% of revenue in the nine months ended December 2024 and 43% in FY24. The top 10 customers accounted for 82% of revenue in 9M FY25 and 67% in FY24.
Working Capital & Inventory Days: The company’s working capital has shown a significant increase over the past few periods. The company reports no inventory.
Receivables Trend: The trade receivables collection period has varied significantly, sharply increasing in FY23 before reducing in subsequent periods, implying improved collection.
CAGR Profits for Last 3 Years: Profit After Tax (PAT) has shown a strong upward trend over the last three fiscal years (FY22-FY24), demonstrating significant growth (2370.11% in FY23 vs FY22, 220.90% in FY24 vs FY23).
Trend in EBITDA Margins over Last 3 Years: EBITDA margins have consistently improved, rising from 56.63% in FY22 to 90.86% in FY23, 95.98% in FY24, and over 101.32% in the nine months ended December 2024, reflecting enhanced operational efficiency.
Peer Comparison
| Company | Year | Revenue (rs cr.) | Net Profit (Rs. Cr.) | NPM | P/E | Mrkt cap/Sales |
|---|---|---|---|---|---|---|
| Ace Alpha Tech Limited | FY24 | 15.35 | 10.65 | 69.4 | 11.5 | 7.9 |
| 63 Moons Technologies Ltd. | FY24 | 46.8 | -54.8 | loss | loss | 99.2 |
Opinion
I will apply in this IPO with limited funds at my disposal if any. Post IPO equity capital: ₹17.56 crore, P/E for FY 24: 11.37 times, P/E for FY25: 10.73 times (annualized). GMP for the IPO has surged recently. It is a small company and this highly speculative grade and there are high regulatory risks.
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- SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
- This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.