Advanced Sys-Tek Files DRHP with SEBI for IPO

Advanced Sys-Tek Ltd has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO comprises a fresh issue worth ₹115 crore and an offer for sale (OFS) of up to 15.27 lakh shares by existing promoters. The retail quota is not less than 35%, QIB is not more than 50%, and HNI is at least 15%. The IPO is to be listed on the NSE and BSE.

IPO Structure and Fund Allocation

The IPO includes a fresh issue of shares and an OFS by promoters Mukesh R Kapadia and Umed Amarchand Fifadra. Each promoter plans to divest up to 7.64 lakh shares. Proceeds from the fresh issue will be used to support capital expenditure requirements, fund long-term working capital needs, and for general corporate purposes. The capital raised will be directed towards expanding operational capacity and strengthening working capital resources to enhance infrastructure and technological capabilities.

Company Profile

Advanced Sys-Tek Ltd, founded in 1988, specializes in industrial automation solutions, including advanced automated metering systems for oil and gas terminals and the modernization of manual facilities. The company focuses on providing large-scale measurements to monitor, control, and automate processes in industries. Advanced Sys-Tek has completed over 200 installations across India and international markets as of September 30, 2024. The company provides automation solutions for petroleum, oil, and lubricant (POL) storage terminals, including terminal automation (TA) and custody transfer metering of hydrocarbons. Additionally, Advanced Sys-Tek delivers metering skids for precise gas flow measurement in pipelines and has executed automation projects for LPG bottling plants and fuel farm automation at Indian airports.

Financial Performance

Advanced Sys-Tek demonstrated strong financial growth in 2024, with revenue rising by 34.07% from ₹140.42 crore in FY23 to ₹188.23 crore in FY24. Net profit also saw a significant increase of 45.94%, reaching ₹19.22 crore in FY24, up from ₹13.17 crore in FY23. Over the past three years, revenue has steadily grown from ₹141.16 crore in 2022 to ₹142.27 crore in 2023 and ₹192.15 crore in 2024, while profit after tax (PAT) increased from ₹6.99 crore in 2022 to ₹13.17 crore in 2023 and ₹19.22 crore in 2024. For the six months ending September 2024, the company reported ₹108.86 crore in revenue and a PAT of ₹12.15 crore, reflecting its continued upward trajectory.

Book-Running Lead Managers

Inga Ventures and Sowilo Capital Advisors are the book-running lead managers for the IPO.

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