ATC Energies System IPO comes at a time when India’s renewable energy, electric mobility, and storage infrastructure sectors are gaining serious momentum. The company specializes in the production and supply of lithium-ion batteries. Backed by robust fundamentals, strategic foresight, and market tailwinds, ATC Energies is poised to capture a meaningful slice of this rapidly evolving industry.
IPO Central analyzes the RHP and brings you a simple, easy-to-understand ATC Energies IPO review for retail investors. In addition, we calculated the Most essential IPO investing ratios to provide you with a fair value estimation. ATC Energies IPO analysis unpacks the business model, financial strength, valuation metrics, and inherent risks of ATC Energies System.
ATC Energies IPO Details
- Offer Size: 54,03,600 equity shares worth INR 51.02 crore
- Price Band: INR 112–118 per share
- Minimum Bid Lot: 1,200 equity shares (INR 1,41,600) per lot
- QIBs Allocation: 30% of net offer
- NIIs Allocation: 35% of net offer
- Retail Allocation: 35% of net offer
- Market Maker Reservation: 2,71,200 shares
Business Model Overview
ATC Energies System operates at the intersection of technology and sustainability. The company designs, manufactures, and assembles:
- Lithium-ion battery packs for electric vehicles (EVs), industrial automation, and backup systems.
- Energy storage systems (ESS) for grid balancing and renewable energy storage.
- Custom power solutions tailored for telecom, healthcare, and infrastructure clients.
The company runs two advanced manufacturing units:
- Vasai, Maharashtra – Specializing in compact battery assembly.
- Noida, Uttar Pradesh – A larger facility targeting industrial-scale manufacturing.
- Supply Chain Strategy: Heavily reliant on imported lithium-ion cells, ATC mitigates supply chain disruptions with a proactive multi-vendor sourcing strategy. However, foreign exchange volatility and geopolitical risks remain key considerations.
- Customer Base and Market Positioning: With clients ranging from EV manufacturers (two-wheelers and three-wheelers) to telecom operators and infrastructure companies, ATC’s growing repeat orders signal product reliability and strategic positioning.
- Revenue Model: The dual approach — long-term supply contracts combined with short-cycle project orders — ensures predictability while maintaining agility.
What Will They Do With IPO Funds?
The company plans to utilize the net proceeds for multiple purposes, including repayment or pre-payment of borrowings related to the purchase of its Noida factory amounting to INR 9.53 crore. Additionally, INR 6.72 crore will be allocated for capital expenditure on refurbishment and upgrades at the Noida factory, and INR 7.47 crore will be used for IT upgrades at the Noida and Vasai factories. Further, INR 9.50 crore will be directed towards meeting working capital requirements, with the remaining funds allocated for general corporate purposes.
ATC Energies IPO Review – Financials, IPO Investing Ratios
Revenue Trends
- FY2022: INR 36.28 crore
- FY2023: INR 33.14 crore
- FY2024: INR 51.20 crore
- FY2024 (6M): INR 22.49 crore
Net Profit Trends
- FY2022: INR 11.86 crore
- FY2023: INR 7.76 crore
- FY2024: INR 10.89 crore
- FY2024 (6M): INR 5.77 crore
EBITDA margin has grown from 41.92% (FY22) to 29.31% (FY24), highlighting affected operational efficiency.
Key Financial Ratios:
- P/E Ratio: 17.40 — Conservative relative to the industry average of 31.04, indicating room for upside.
- P/S Ratio: 3.7 — A justified premium in a high-growth sector.
- Debt-to-Equity (D/E): Improved from 0.82 in FY22 to 0.32 in FY24, demonstrating prudent fiscal management.
- ROE: 39.38% — Reflects efficient capital deployment.
- ROCE: 42.66% — Indicates excellent capital efficiency.
- PBV Ratio: 5.72x — Slightly elevated but acceptable given profitability and asset-light operations.
- Current Ratio: 3.78 — Strong liquidity position.
Promoter and Management
- Promoter: Sandeep Gangabishan Bajoria (pre-offer holding: 100%)
- CFO: Piyush Vijaykumar Kedia
- Company Secretary: Kiran Honnaya Shettigar
- Whole-Time Director: Zubair Rahman
Collectively, the management exhibits a blend of technical expertise, fiscal discipline, and strategic foresight.
Industry Tailwinds
- Government incentives like FAME II and Production-Linked Incentive (PLI) schemes.
- Rapid EV adoption and grid storage demand.
- A strong push for decarbonization both domestically and globally.
ATC Energies IPO Analysis By Peer Comparison
ATC Energies, with a price-to-earnings (P/E) ratio of 17.40, appears attractively valued compared to its listed peers. Eveready Industries is trading at a significantly higher P/E of 36.08, while High Energy Batteries also commands a premium with a P/E of 26.00.
Although ATC Energies’ Return on Net Worth (RoNW) stands at a strong 39.38%, higher than both Eveready’s 18.91% and marginally above High Energy Batteries’ 21.29%, its net asset value per share at INR 20.60 is lower in comparison. This indicates that ATC Energies offers a healthy return profile and relatively moderate valuation, suggesting potential for upside re-rating if earnings growth continues to strengthen.
Strengths
- Exclusive focus on lithium-ion battery and energy storage systems with tailored solutions for multiple industries.
- Strong, proactive supply chain strategy with multi-vendor relationships to mitigate sourcing risks.
- Well-located manufacturing units in Vasai and Noida for efficient production and logistical advantages.
- Growing repeat customer base, highlighting trust and product reliability.
- Robust financial performance with improving margins and a healthy balance sheet.
- Significant investment in R&D for product innovation and long-term competitiveness.
- Strong promoter commitment and experienced management team with deep industry knowledge.
Risks and Mitigation
- Negative cash flows:
- Net cash from operating activities was negative INR 1.11 crore in the six months ended 30 September 2024.
- Past fiscal years also show fluctuations, with positive cash flows of INR 2.64 crore (FY24), INR 2.64 crore (FY23), and INR 1.33 crore (FY22), indicating inconsistency that may impact future operations.
- High dependency on the banking sector:
- Revenue contribution from the banking industry:
- 57% (six months ended 30 September 2024)
- 58% (FY24)
- 70% (FY23)
- 92% (FY22)
- Any downturn or consolidation in this sector could significantly affect revenue and business stability.
- Revenue contribution from the banking industry:
- Dependence on raw material imports from China:
- Heavy reliance on imports from China increases exposure to political tensions, trade restrictions, and supply chain disruptions, which could hurt operations and margins.
- Delays in statutory dues payment (with instances):
- EPF:
- FY2021-22: INR 0.20 lakhs delayed due to EPF portal issues; corrective policy put in place.
- GST Filings:
- FY2024-25: Delay of one day due to internet issues.
- FY2022-23: Delay of three days caused by accountant’s sick leave.
- FY2021-22 & FY2020-21: Delays due to COVID-19 lockdowns.
- Although timely compliance measures are in place, future delays could lead to penalties.
- EPF:
- Promoter loan risk:
- An outstanding unsecured, interest-free loan of INR 5.48 crore from promoter Sandeep Gangabishan Bajoria (as of 3 March 2025).
- The loan can be recalled at any time, forcing the company to borrow at higher interest rates or use internal funds, impacting profitability.
- Conversion of this loan into equity shares could dilute existing shareholders’ stakes and negatively affect stock prices.
Conclusion
ATC Energies System IPO presents a balanced mix of conservative valuation, robust financial health, and promising sectoral positioning. For medium- to long-term investors looking to capitalize on India’s energy revolution, this offering appears well-timed and well-structured.
Overall Rating: 4.5/5, Suitable for investors with a medium-to-long-term horizon, with active monitoring of execution efficiency and post-listing governance.