ACE Alpha Tech Ltd

About Ace Alpha Tech IPO

The IPO of Ace Alpha Tech Ltd comprises a fresh issue of up to 35,48,400 equity shares, aggregating to ₹22.66 crores. It also comprises an offer for sale of up to 11,22,000 equity shares, aggregating to ₹7.74 crores. Also, ₹1.82 cr is reserved for market makers. It’s a 100% book-built issue. The price band of the issue is between ₹65 and ₹69. The lot size is 2000.

The IPO opens on June 26, 2025 and closes on June 30, 2025. The allotment date is July 1, 2025. The listing date is July 3, 2025. The initiation of refunds will take place on July 2, 2025. The credit of shares to the demat account will take place on July 2, 2025.

Objectives of Ace Alpha Tech IPO

• Capital expenditure
• Unidentified acquisition and general corporate purposes

Industry Outlook

The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 7.4% of India’s GDP in FY22, and it is expected to contribute 10% to India’s GDP by 2025. India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP), Infomerics Ratings said in a report.

Company Information

Ace Alpha Tech Ltd is serving the financial industry with its comprehensive suite of trading solutions catering to all types of clients, ranging from institutional investors to retail traders via brokers. It provides customised trading solutions in which it uses advanced, institutional-grade algorithms that work as a front-end layer over existing order management systems/ RMS which are connected with stock exchanges.

Risks of Ace Alpha Tech IPO

• Dependent on Few Clients for Revenues

The company is dependent on and derives a substantial portion of its revenue from a limited number of customers. Cancellation by customers or a delay or reduction in their orders could have a material adverse effect on its business, results of operations and financial condition.

• Lack of Ownership of Registered Office

The company lacks ownership of the registered office and other offices used by the company. Any interference with its entitlements as the licensee/lessee or the cancellation of contracts with its licensors/lessors could have a negative effect on its activities and, as a result, its overall business.

• Success Dependent on the Expertise of Promoters and Senior Management

The continued success of the company’s business is heavily contingent on the expertise and involvement of its promoters, senior management and other key personnel. The loss of, or its inability to attract or retain, such persons could affect its business, results of operations, financial condition and cash flows.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: Skyline Financial Services Pvt Ltd
• Book Running Lead Manager: Narnolia Financial Services Ltd

Business Model

Providing customised trading solutions, the company’s trading solutions enable clients to execute their trading strategies automatically and without manual intervention, offering enhanced efficiency and performance, backed by robust risk management tools. The company’s user management and risk management system further streamline operations, automating processes like user onboarding, access management, and ongoing risk monitoring.

The company provides various solutions to its clients including set up for institutional trading, B2B Retail Trading, User Management, Proprietary Trading solutions and custom trading. Along with this, it ensures the redressal of client issues and provides end to end solutions.

Company Growth Trajectory

The revenue from operations of Ace Alpha Tech Ltd grew from ₹0.3200 crores in FY 22 to ₹14.8712 crores in FY 24. Its EBITDA margin grew from 56.63% in FY 22 to 95.98% in FY 24, while PAT margin grew from 42.03% in FY 22 to 70.81% in FY 24. Diverse customer segments, strong revenue model and skilled team and resources have contributed to the company's growth over the years.

Market Position

Providing customised trading solutions, Ace Alpha Tech Ltd caters to a wide range of clients. These include institutions, proprietary desks, and retail traders. A wide range of services tailored for different market segments (institutions, proprietary desks, brokers) creates a one-stop solution for clients, reducing their need to use multiple platforms.

How to Apply for the Ace Alpha Tech IPO?

1. Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Pvt Ltd
• Click on ‘Public Issue’ from ‘Investors’ dropdown
• Choose ‘Company Name’
• Enter DPID/Client ID or Application Number or PAN Number
• Click on ‘Search’ to know the status

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Choose the Issue Type
• Select the Issue Name from dropdown
• Put in either your application number or PAN number
• Check the box ‘I’m not a robot’
• Click on ‘Search’ to know allotment status

How to Apply for the Ace Alpha Tech IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.