C2C Advanced Systems Limited is a vertically integrated defense electronics solutions provider catering to the indigenously developed defense products industry in India. C2C Advanced Systems IPO mulls to mobilise Rs 99.07 crores.

About C2C Advanced Systems IPO

• They are an Indian Company in the private sector which has been at the forefront of product development in mission critical applications.
• Their key expertise includes C4I systems for effective situational awareness and decision support, AI/ML based big data analytics, enterprise integration of real time data from IIOT and embedded / FPGA designs.
• They are the first start-up in India to foray into the Defence Sector and have delivered Combat Management Systems (CMS) for two Malaysian Naval Frigate Ships.
• They have over 5 years of experience and an employee strength of 190, and have delivered battle proven systems and intelligent decision support systems globally.
• C2C Innovations Private Limited, PVR Multimedia Private Limited, Lakshmi Chandra, Maya Chandra, Subrahmanya Srinivasa Narendra Lanka, Kuriyedath Ramesh and Murtaza Ali Soomar are the company’s promoters.

Financials: C2C Advanced Systems IPO

Anchor: C2C Advanced Systems IPO

C2C Advanced Systems IPO: Salient Points

• Defence exports grew by 334% in last five years; India now exporting to over 75 countries.
• C2C Advanced Systems IPO is leading player in the domain of cutting edge technologies systems for defense, security and aerospace sectors.
• Due to the increase in orders the Company intends to recruit a larger number of employees. Currently the Company has about 190 employees on its rolls. They propose to set up a new premises at Bengaluru in close proximity to their existing registered office and facility
• Net issue proceeds use:

• As per company, Current systems in the Indian military will need retrofits and upgrades and C2C Advanced Systems has the ability to re-engineer and revamp such legacy systems and bring them to current needs in warfare.
• Revenue from exports on a consolidated basis for the Fiscals ended 2024, 2023 and  2022 amounted to ₹ 3,089.62 lakhs, ₹1,921.29 lakhs and 714.80 lakhs respectively and amounted to ₹ 4,005.57 lakhs for the six month period ended September 30, 2024 constituting 75.25% , 87.09% and 88.81%, respectively for the Financial years ended March 31, 2024, March 31,2023 and March 31, 2022 respectively and 92.67% for the period ended September 30, 2024 respectively.
• Peers

• They are be one of the five or six companies in the world who make a CMS. (Combat Management system)
• Also in defense domain, they are one among the 24 companies in India which are CMMI level 3.
• In the naval domain, they make products like combat management systems, integrated bridge systems, warship electronic chart display systems, integrated platform management systems. They also make remote optical surveillance systems, which are used both in army and air force as well.
• C2C Advanced Systems Limited’s revenue increased by 412% and profit after tax by 327% between FY ending with March 31, 2024 and March 31, 2023.
• PE Fy25 (annualized) ; 19.xx ; PE Fy24: 30x
• I intend to apply in C2C Advanced Systems IPO. There are fair chances that they can grow quite fast in next three years. After turning profitable now it has an Impressive financial metrics as of March 31. 2024. including a 16.06% ROE. 22.75% ROCE. 4521% EBITDA margin. & 29.90% PAT margin underscore strong financial health. India is moving from an import making nation to export driven nation in Defense.
• GMP as reported on social media is around 245 (108%).
• 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.