The initial public offering of Bengaluru-based C2C Advanced Systems saw a strong response from all categories of investors on the NSE-Emerge with over one lakh retail investors evincing interest on day 1 on Friday. The SME-IPO, that comes out with a price band of ₹214-226, closes on November 26.

The retail portion was subscribed 41.48 times, the HNI portion 26.37 times, and the QIB portion 0.53 times.

The market lot is 600 shares. Up to 50 per cent of the issue is reserved for qualified institutional buyers, 15 per cent for high net-worth individuals, and 35 per cent for retail investors.

Anchor investors

The entire offer is a fresh issue of 43.84 lakh shares worth ₹99.07 crore. The IPO has received bids for 7.74 crore shares against the 31,34,400 shares (net-off anchor portion) offered, an oversubscription of 24.7 times, according to NSE data.

As part of IPO, the company raised ₹28.23 crore from anchor investors. It has allotted 12.49 lakh shares at ₹226 each to eight anchor investors — Aarth AIF, Bengal Finance & Investment, J4S Venture Fund, Kingsman Wealth Fund, LC Radiance Fund, NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund and Shine Star Build Cap Fund.

C2C Advanced Systems, a vertically integrated defence electronics solutions provider, offers a diverse range of products, professional services and product engineering solutions. C2C Advanced Systems core competencies include 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.

Its customers include the Indian Navy, HAL, BHEL, Indian Army, Semcon, Bharat Forge, Dassault Systems, and L&T Defence.

Fund utilisation

The company proposes to utilise the proceeds of the net issue for funding capital expenditure towards the purchase of fixed assets (both hardware and software) for its existing operations and Dubai Centre (₹14.73 crore), Fit-outs at existing facilities (₹4.58 crore), towards security deposit for our new premises at Bengaluru (₹1.60 crore) and working capital needs (₹46 crore).

Promoters of the company are C2C Innovations Pvt Ltd , PVR Multimedia Pvt Ltd, Lakshmi Chandra, Maya Chandra, Subrahmanya Srinivasa Narendra Lanka, Kuriyedath Ramesh and Murtaza Ali Soomar.

Mark Corporate Advisors Private Ltd and Beeline Capital Advisors Pvt Ltd are the book running lead managers and Link Intime India Pvt Ltd is the registrar for the issue.

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