IPO Investors Suffer 13.86% Loss on Day One as Shares List Below Issue Price
New Delhi, April 2, 2025 – Business Desk – ATC Energies, a lithium-ion battery manufacturer, delivered a disheartening performance on its stock market debut, listing at a significant discount and quickly hitting the lower circuit limit on the NSE SME platform.
Listing Summary: Weak Start for ATC Energies
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Issue Price: ₹118 per share
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Listing Price: ₹107 (down 9.32%)
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Intraday Low: ₹101.65 (lower circuit)
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Day-One Loss for IPO Investors: 13.86%
Following its debut at ₹107, selling pressure dragged the stock further down to ₹101.65, where it was locked in the lower circuit, triggering a sharp blow for early investors.
Muted IPO Subscription Reflects Lukewarm Sentiment
The IPO, worth ₹63.76 crore, was open for subscription from March 25 to March 27, and the response was modest:
| Investor Category | Subscription Status |
|---|---|
| Qualified Institutional Buyers (QIBs) | 1.38x |
| Non-Institutional Investors (NIIs) | 0.81x |
| Retail Investors | 2.49x |
| Overall Subscription | 1.61x |
The IPO included a fresh issue of ₹51.02 crore and an Offer for Sale (OFS) of 10.80 lakh shares with a face value of ₹10.
Use of IPO Proceeds
ATC Energies planned to utilize the raised funds for:
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Repayment of existing loans
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Factory refurbishment and civil upgrades in Noida
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Meeting working capital requirements
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General corporate purposes
Financial Performance: Mixed Signals
The company’s financial trajectory has shown inconsistencies over the past few years:
| Financial Year | Net Profit (₹ Cr) | Revenue (₹ Cr) |
|---|---|---|
| FY 2021–22 | ₹11.86 | – |
| FY 2022–23 | ₹7.76 | – |
| FY 2023–24 | ₹10.89 | – |
| H1 FY 2024–25 (Apr–Sep) | ₹5.77 | ₹22.57 |
Although there was a recovery in profits in FY24, the listing sentiment seems to have been marred by volatile earnings history and moderate subscription demand.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
