ATC Energies IPO Listing: Stock lists at 9.32% discount on NSE SME

ATC Energies IPO Listing

ATC Energies IPO Listing: Shares Plunge After Listing, Leaving Investors in Shock

ATC Energies’ ₹ 63.76 crore Initial Public Offering (IPO) was open for subscription from March 25-27, 2025.

The IPO, which aimed to raise capital to fund its expansion and growth plans, was initially met with some anticipation in the market.

However, its listing today on the NSE SME platform left investors stunned, as the stock debuted at a sharp discount, disappointing many who had hoped for a better start.

ATC Energies IPO: A Disastrous Debut on the NSE SME Platform

ATC Energies, which provides integrated energy storage solutions, saw its shares listed on the NSE SME platform at ₹ 107, which represents a significant 9.32% drop from the issue price of ₹ 118 per share.

This disappointing listing was not what IPO investors had anticipated, as the debut on the stock market is typically viewed as a key indicator of investor sentiment and confidence in the company.

For IPO investors who had subscribed at ₹ 118, the lack of a listing gain was already a setback. However, the situation worsened shortly after the listing when the stock continued to slide, eventually hitting the lower circuit limit of ₹ 101.65 per share.

The lower circuit, a mechanism that halts trading to prevent excessive volatility, is triggered when a stock falls by a certain percentage in a single trading day—in this case, the price fell by over 13.86% from its issue price.

This sharp drop sent shockwaves through the investor community, as many were left wondering about the company’s future prospects and the reasoning behind the market’s poor reception.

ATC Energies IPO: A Lukewarm Subscription Response

The subscription data for ATC Energies’ IPO further painted a bleak picture. While the overall subscription for the IPO was 1.61 times, the breakdown of demand across different categories reveals a less-than-enthusiastic response from potential investors.

The Qualified Institutional Buyers (QIB) portion was subscribed 1.38 times, reflecting moderate interest from institutional investors.

However, the Non-Institutional Investors (NII) portion was only subscribed 0.81 times, signaling a lack of confidence from high-net-worth individuals and other non-institutional entities.

Retail investors, who typically form the backbone of most IPOs in India, showed more interest, with their portion being oversubscribed 2.49 times.

While this was a positive sign, it wasn’t enough to generate significant enthusiasm or ensure a strong listing performance for the company.

This underwhelming subscription response suggests that ATC Energies was unable to convince a broad range of investors about its long-term growth potential, particularly given the volatile conditions in the energy and technology sectors.

How ATC Energies Plans to Utilize the IPO Proceeds

Despite the disappointing market reception, ATC Energies still raised significant capital through the IPO.

The company intends to use the ₹ 63.76 crore raised in the offering for several key purposes aimed at improving its operations, reducing debt, and supporting its growth initiatives.

A portion of the funds will be allocated to the repayment of debt, a critical step in improving the company’s financial health and freeing up resources for future investments.

Specifically, ₹ 9.53 crore will be used to repay outstanding debt, which will help strengthen ATC Energies’ balance sheet.

The company also plans to invest ₹ 6.72 crore in refurbishing, civil work, and upgrades to its Noida factory.

These upgrades are expected to improve manufacturing capabilities and efficiency, positioning the company to better meet future demand for its energy storage solutions.

In addition, the company will allocate ₹ 7.47 crore toward upgrading its IT systems in its Noida and Vasai factories as well as its registered office.

Modernizing its IT infrastructure will help ATC Energies streamline operations and improve its capacity to manage increased production as the business grows.

Another significant portion, ₹ 9.50 crore, will be used for working capital requirements. This will allow the company to maintain a healthy cash flow and manage its day-to-day operations effectively.

The remaining funds will be used for general corporate purposes, which typically cover a wide range of strategic initiatives such as marketing, expansion, and other business development activities.

A Closer Look at ATC Energies: The Company’s Background and Financials

ATC Energies, established in 2020, is a relatively young player in the rapidly growing energy storage industry.

The company specializes in manufacturing cost-effective lithium and lithium-ion batteries, which are crucial components in the energy storage sector.

These batteries are widely used across various industries, including banking, automobiles, and other sectors that require reliable energy storage solutions.

The company has positioned itself as a key player in the energy storage space, a sector that is seeing increasing demand due to the growing need for renewable energy storage and the shift towards electric vehicles.

ATC Energies operates out of its registered office in Mumbai and has manufacturing facilities in Vasai, Thane, and Noida, allowing it to serve clients across India.

From a financial standpoint, ATC Energies has shown mixed performance over the past few years. In FY 2022, the company reported a net profit of ₹ 11.86 crore, but this figure dropped to ₹ 7.76 crore in FY 2023.

However, the company experienced a recovery in FY 2024, with profits climbing back to ₹ 10.89 crore.

While this indicates some level of financial resilience, the company’s revenue has been volatile. Revenue for FY 2022 stood at ₹ 36.52 crore, which dropped to ₹ 33.22 crore in FY 2023, but rebounded to ₹ 51.51 crore in FY 2024.

For the first half of FY 2024-25 (April to September 2024), ATC Energies reported a net profit of ₹ 5.77 crore, with revenue of ₹ 22.57 crore.

This suggests that the company is on a positive trajectory in the ongoing financial year, though its growth rate remains somewhat inconsistent.

What’s Next for ATC Energies?

The poor listing performance of ATC Energies’ shares today has raised several questions about the company’s future prospects.

While the company has plans to invest the IPO funds in debt reduction, factory upgrades, and working capital, its weak market debut suggests that it will need to prove itself in the coming quarters.

The volatility in its financial performance over the past few years indicates that ATC Energies may face challenges in maintaining consistent growth and profitability.

Investors who bought into the IPO at ₹ 118 per share are now facing significant losses, and it remains to be seen whether the company can recover from this setback.

For ATC Energies to regain investor confidence, it will need to show strong operational performance, manage its costs effectively, and successfully execute its expansion plans.

Final Remarks: Cautionary Lessons for Investors

The disappointing listing of ATC Energies highlights the risks involved in investing in IPOs, particularly in volatile sectors like energy storage.

While the company has a solid product offering and growth potential, its rocky start on the stock market serves as a reminder of the uncertainties that IPO investors face.

The coming months will be critical for ATC Energies, as the company must prove its ability to generate sustainable growth and deliver value to its shareholders.

Until then, investors may want to approach the stock with caution and closely monitor its performance.