C2C Advanced Systems
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Nov 2024 – 26 Nov 2024
- Listing date
- 03 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹226 per share
- Lot size
- 600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹99.07 Cr
- Market cap at offer price
- ₹376 Cr
- Promoter holding
- 55.29% → 40.73% pre-issue → post-issue
- ISIN
- INE0U7V01015
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Mark Corporate Advisors Pvt.Ltd.
- Registered office
- No.86, Wings of Eagles, SS Commercial Estate, Varthur Road, Nagavarapalya Main Road, C V Raman Nagar, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 12,49,200 | — | — |
| Market maker | 2,19,600 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹226
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,35,600 |
| S-HNI (min) | 2 | 1,200 | ₹2,71,200 |
| S-HNI (max) | 7 | 4,200 | ₹9,49,200 |
| B-HNI (min) | 8 | 4,800 | ₹10,84,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.02 | 11.69 |
| P/E (×) | 22.55 | 19.33 |
| Price to book (×) | 3.62 | — |
| Market cap | — | ₹376 Cr |
Key performance indicators
- Return on net worth
- 11.29%
- Debt / equity
- 0.15
- PAT margin
- 22.51%
- NAV per share
- ₹70.31
- Price to book
- 3.62
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About C2C Advanced Systems
C2C Advanced Systems Limited is an Indian defence technology company incorporated in 2018 that specializes in product development for mission-critical applications. The company has expertise in C4I systems (Command, Control, Communications, Computers, Intelligence) for situational awareness and decision support, AI/ML-based big data analytics, enterprise integration of real-time IIOT data, and embedded/FPGA designs. As the first Indian startup to enter the defence sector, C2C has delivered Combat Management Systems (CMS) for two Malaysian Naval Frigate Ships and other battle-proven systems. The company generates revenue primarily through contracts with Indian government defence entities and their prime contractors, as well as from exports of defence products to international customers. With over 5 years of operational experience and a workforce of 190 employees, C2C positions itself as a vertically integrated systems provider across the spectrum of defence and aerospace platforms including space, air, land, and sea.
Company Analysis
from RHPC2C Advanced Systems Limited designs, develops, and manufactures mission-critical C4I systems, AI/ML-based analytics, and embedded/FPGA solutions for the Indian defence and aerospace sector, serving both domestic and international customers.
C2C Advanced Systems Limited is an Indian defence technology company incorporated in 2018 that specializes in product development for mission-critical applications. The company has expertise in C4I systems (Command, Control, Communications, Computers, Intelligence) for situational awareness and decision support, AI/ML-based big data analytics, enterprise integration of real-time IIOT data, and embedded/FPGA designs. As the first Indian startup to enter the defence sector, C2C has delivered Combat Management Systems (CMS) for two Malaysian Naval Frigate Ships and other battle-proven systems. The company generates revenue primarily through contracts with Indian government defence entities and their prime contractors, as well as from exports of defence products to international customers. With over 5 years of operational experience and a workforce of 190 employees, C2C positions itself as a vertically integrated systems provider across the spectrum of defence and aerospace platforms including space, air, land, and sea.
Objects of the Issue
- Purchase of Fixed Assets (both hardware and software) for existing operations and Dubai Experience Centre ₹1,473.10 lakhs p.24
- Fit-outs at new premises at Bengaluru and Experience Centre at Dubai ₹458.00 lakhs p.24
- Security deposit for new premises at Bengaluru ₹160.00 lakhs p.24
- Funding working capital requirement ₹4,600.00 lakhs p.24
- General corporate purposes p.24
- Funding of capital expenditure towards purchase of fixed assets (both hardware and software) for our existing operations and the proposed set up of Experience Centre at Dubai ₹1,473.10 lakhs p.92
- Towards fit-outs at the new premises at both Bengaluru and Dubai ₹458.00 lakhs p.92
- Payment of Security Deposit for the new premises at Bengaluru, Karnataka, India and Dubai ₹160.00 lakhs p.92
- To fund the working capital requirements of our Company ₹4,600.00 lakhs p.92
- General corporate purposes [●] p.92
- Not specified in this part of the document
- —
Issue Structure
- Total Issue
- 43,83,600 Equity Shares aggregating up to ₹[●] lakhs
- Fresh Issue
- 43,83,600 Equity Shares at ₹[●] per share (including premium of ₹[●]) aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price) - to be decided by the Company in consultation with BRLMs
- Lot Size
- [●] equity shares and in multiples of [●] thereafter
- Face Value
- ₹10.00 each
Business Model
C2C Advanced Systems Limited earns revenue primarily through design, development, manufacturing, and testing of defence and aerospace products and solutions sold to: (1) Government of India entities and defence public sector undertakings (DPSUs) through prime contractors; (2) International defence customers for export. The company operates on a project and contract basis, with revenue recognized upon delivery and acceptance of products. The business model involves substantial R&D investment to develop customized, technologically advanced products meeting customer specifications, followed by manufacturing and warranty support.
Business Segments
SWOT Analysis
- • Strong revenue growth trajectory(p.100)
- • High profitability margins(p.110)
- • Significant order book(p.99)
- • Wide range of defense products and solutions with end-to-end capabilities(p.136)
- • Strong R&D capabilities with dedicated Experience Centre(p.136)
- • Proven track record with successful Combat Management System delivery to Malaysian Navy(p.131)
- • In-house design and development capabilities across entire spectrum of defense systems(p.132)
- • Experienced management team with over 100 man-years of military systems expertise(p.133)
- • CMM Level 3 and ISO 9001-2015 certification demonstrating quality standards(p.158)
- • Positioned to benefit from India's Atmanirbhar Bharat and Make in India initiatives(p.137)
- • Strong leadership with deep technical and military expertise(p.177)
- • Experienced management team with diverse expertise(p.177)
- • Profitability and strong earnings(p.237)
- • Board has no undisclosed conflicts or related-party complications(p.178)
- • Vertically integrated software-focused defence technology provider with own IP(p.241)
- • Proven export track record with international defence contracts(p.247)
- • Strong financial performance with 470% increase in profit before tax(p.246)
- • Diversified customer base across defence, aerospace, and civilian sectors(p.241)
- • Low financial leverage with debt-to-equity ratio of 0.15(p.239)
- • All borrowings are unsecured from related parties with no bank debt(p.240)
- • High dependence on large defence contracts(p.99)
- • Concentrated customer base(p.99)
- • Working capital intensive operations(p.99)
- • Historical negative working capital(p.99)
- • Heavy dependence on government and defense sector customers(p.134)
- • Significant revenue concentration among top 10 customers (99.95% as of Sept 2024)(p.134)
- • Limited domestic sales representation (7.29% of revenue as of Sept 2024, primarily from prime contractors to GOI)(p.134)
- • High attrition rate historically (48.78% in FY22, 27.59% in FY23)(p.160)
- • Early stage company with limited operating history (incorporated 2018)(p.171)
- • Small workforce of 190 employees with 155 technical staff creating execution risk(p.159)
- • Dependence on related party financing(p.224)
- • High concentration in trade receivables(p.221)
- • Limited diversification in customer base with significant reliance on exports(p.226)
- • Recent history of director changes and instability(p.181)
- • Group companies showing declining or nil revenue(p.199)
- • Heavy dependence on government contracts and defence sector(p.247)
- • Customer concentration risk with only 4 domestic customers in FY2022(p.247)
- • Delayed PF deposits to employees(p.256)
- • Outstanding income tax demands against group company RTTS TechnoSolutions(p.255)
- • High operating cash burn despite profitability(p.249)
- • Government Make in India initiatives(p.106)
- • Expansion into new geographies(p.92)
- • Training centre establishment(p.99)
- • Enhanced market visibility post-listing(p.92)
- • India's defense manufacturing target of US$25 billion by 2025 with government support(p.120)
- • Defense Production and Export Promotion Policy goals including Rs 1.75 lakh crore turnover by 2025(p.123)
- • Growing defense exports with 334% growth in last five years and exports to over 75 countries(p.122)
- • Expansion into dual-use Industry 4.0 and digital transformation markets(p.131)
- • Import embargo on 411+ defense items creating opportunities for domestic suppliers(p.137)
- • Strong order book of Rs 65.27 crores as of March 2024 indicating growth pipeline(p.135)
- • India's defense spending growth with US$72.2 billion in FY2023-24 budget(p.120)
- • Planned international expansion with branch offices in Singapore, UK, Dubai and Malaysia(p.158)
- • Growing defence and advanced systems market with government focus(p.211)
- • Expansion into international markets(p.212)
- • Strong revenue growth trajectory(p.237)
- • Established relationships with government and defence entities(p.233)
- • Expansion into civilian manufacturing and Industry 4.0 segment(p.241)
- • Growth in export markets following Malaysian Navy success(p.247)
- • Increasing indigenous defence technology requirements(p.241)
- • Growing demand for AI/ML and advanced analytics in defence(p.241)
- • COVID-19 pandemic impact on business(p.52)
- • Indian economic slowdown(p.54)
- • Inflation pressure on costs(p.54)
- • Geopolitical tensions affecting supply chain(p.53)
- • Tax law changes(p.53)
- • Natural disasters and epidemics(p.53)
- • India's sovereign credit rating downgrade(p.53)
- • Government procurement delays and changes in defense acquisition policies(p.159)
- • Competition from established global and domestic defense manufacturers(p.159)
- • Dependence on supply chain and specialized component availability(p.158)
- • Foreign exchange volatility affecting overseas revenue and costs(p.135)
- • Global economic slowdown forecast of 3.0% in 2023 and 2.9% in 2024(p.117)
- • Potential loss of key technical personnel and difficulty in talent retention(p.160)
- • Regulatory changes in defense sector affecting procurement and manufacturing rules(p.163)
- • Significant aging of receivables beyond one year(p.221)
- • Exposure to foreign currency fluctuations(p.226)
- • Dependence on group company for critical business functions(p.199)
- • Regulatory and compliance risks in defence sector(p.181)
- • Intense competition from established global defence platform players(p.247)
- • Dependence on government tendering process and approvals(p.247)
- • Rapid technological changes in defence and aerospace sectors(p.242)
- • Regulatory changes in defence export clearances(p.259)
- • General economic and geopolitical risks(p.242)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| C2C Innovations Private Limited | Promoter | 17.13% | — |
| PVR Multimedia Private Limited | Promoter | 29.71% | — |
| Lakshmi Chandra | Promoter | 0.05% | — |
| Maya Chandra | Promoter | 0.22% | — |
| Subrahmanya Srinivasa Narendra Lanka | Promoter | 4.09% | — |
| Kuriyedath Ramesh | Promoter | 4.09% | — |
| Murtaza Ali Soomar | Promoter | Negligible | — |
| C2C Innovations Private Limited | Promoter | 17.13% | 12.61% |
| PVR Multimedia Private Limited | Promoter | 29.71% | 21.88% |
| Subrahmanya Srinivasa Narendra Lanka | Promoter | 4.09% | 3.01% |
| Kuriyedath Ramesh | Promoter | 4.09% | 3.01% |
| Murtaza Ali Soomar | Promoter | Negligible | Negligible |
| Lakshmi Chandra | Promoter | 0.05% | 0.04% |
| Maya Chandra | Promoter | 0.22% | 0.16% |
| Commander Narendra Lanka | Promoter | — | — |
| Commodore Kuriyedath Ramesh | Promoter | — | — |
| Murtaza Soomar | Promoter | — | — |
| C2C Innovations Private Limited | Promoter | 34.26% | — |
| PVR Multimedia Private Limited | Promoter | 29.71% | — |
| Lakshmi Chandra | Promoter | 0.05% | — |
| Kuriyedath Ramesh | Promoter | 4.69% | — |
| Subrahmanya Srinivasa Narendra Lanka | Promoter | 4.09% | — |
| Murtaza Ali Soomar | Promoter | — | — |
| Maya Chandra | Promoter | — | — |
| — | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.