Ace Alpha Tech Limited IPO: Review, Price, Allotment Details

The Ace Alpha Tech Limited IPO is an excellent opportunity for investors to become a part of India's growing technology and software services industry. Ace Alpha Tech Limited is a technology service provider that specializes in technology solutions, software development, and IT consulting across various industries in India. Ace Alpha Tech has a strategic location in Delhi and is expanding its portfolio of clients, positioning it to take advantage of India's digital transformation initiatives as they unfold.

The offering is a combination of fresh issue of 35.48 lakh shares and offer for sale of 11.22 lakh shares, priced at ₹107 per share, and the share will list on BSE SME. Presently, the Grey Market Premium (GMP) is ₹0 (0% premium), thus reflecting neutral market sentiment towards the offered share at the price.

IPO Dates for Ace Alpha Tech Limited

The Ace Alpha Tech Limited IPO is scheduled to open on June 26, 2025, and close on June 30, 2025. The allocation date is expected to be announced by July 1, 2025, with listing planned for July 3, 2025.

IPO Details Summary

About Ace Alpha Tech Limited IPO

Ace Alpha Tech Limited is a technology solutions company focused on software development, IT consulting, and digital transformation services. The company serves various sectors including healthcare, finance, retail, and manufacturing, and provide tailored technology solutions that align with their client's operational needs and digital aspirations.

Ace Alpha Tech is located in Jhilmil Industrial Area, Shahdara East Delhi; within reach of various business hubs, and a large pool of available talent. Ace Alpha Tech has established itself as a credible and trustworthy technology partner for businesses that are seeking to explore modern business technology solutions for growth and scale and to create a competitive advantage. 

The IPO includes both fresh issue and offer for sale that will allow Ace Alpha Tech to use the proceeds for business expansion, technology infrastructure, working capital, and competing in the growing but competitive IT services market. Listing on BSE SME shows the company's positioning at growth stage and long term expansion abilities. 

The service capabilities span custom software development, mobile application development, web solutions, cloud services, and IT consulting, offering a wide range of end-to-end technology solutions. With the rapid growth of India's digital economy, Ace Alpha Tech has the opportunity to capitalize and grow with the increasing opportunity with enterprise technology services.

Financial Performance of Ace Alpha Tech Limited

The company has shown impressive financial performance with consistent growth across key metrics:

Amount in ₹ Crores

Performance Analysis

Ace Alpha Tech Limited has shown significant financial growth. Assets increased from ₹0.55 crores to ₹31.04 crores, miles primarily due to strong expansion and technology investment. Revenue grew from ₹0.36 crores to ₹12.71 crores through consistent growth of significant revenues: ₹15.35 crores was recorded in Mar'24 due to strong demand in the market. PAT has also increased from ₹0.13 crores to ₹8.47 crores maintaining a profit margin over 65%. EBITDA margins have remained strong at 92%. The company's net worth has risen sharply to ₹30.57 crores through a strong level of internal accruals and reserves. The company has operated with no debt; this highlights the strong level of cash flow and low level of financial risk.

IPO Share Reservation

The IPO share allocation follows standard SEBI guidelines for SME listings with 50% QIB, 35% Retail, and 15% HNI Category allocation.

Sector Comparison

*Latest reported period (Dec-24)

Know Before Investing

Risks

Competition : Intense competition from large IT players and multiple SME players in the technology services sector could limit pricing power or market share growth.

Concentration Risk : Dependence on key clients for a large part of overall revenue exposes a company to the risk of losing clients or fluctuations in project demand.

Obsolescence of Technology :
Rapid changes in technology require ongoing costs for skill development and infrastructure upgrades to remain relevant and adopt new technologies.

Retention of Talent :
High attrition rates in the IT sector and competition for skilled resources can limit delivery to projects for clients or stabilize operating margins.

Risks Related to SME Market :
Not being listed on the main board opens stock to possible liquidity constraints and heightened volatility in trading price.

Sensitivity to Economic Cycles :
IT service demand is linked to corporate spending and overall economic health, making it sensitive to downturns in the economic cycle.

Currency Fluctuation :
If the company has international clients, currency movement can negatively impact revenue and profitability from foreign operations.

Project Execution Risk :
Delays in project delivery or exceeding cost can negatively impact client satisfaction, client relationship, and financial results.

Strengths

Impressive Growth Path :
Revenue growth from ₹0.36 crores to ₹12.71 crores in less than 3 years is extremely impressive and demonstrates economic expansion and acceptance for the business model.

Exceptional Profitability :
Earning greater than 65% net profit margins and approximately 92% EBITDA margins is indicative of operational efficiency and pricing power.

Zero Borrowings :
As a business, we have had zero borrowings across all periods, which demonstrates the company generates cash to produce profit for shareholders and our management as a company, have prudently managed the business to ensure financial prudence on the balance sheet and reduce financial risk.

Increasing Net Worth :
A 66 times increase in net worth from ₹0.45 crores to ₹30.57 crores illustrates that the value of the business has increased exponentially and we have a strong financial base to leverage for future business growth.

Open Technology Sector :
Being an open technology sector which is growing rapidly and there is a growing trend on Indian companies' digital transformation initiatives and continued technology adoption across multiple sectors in India.

Good Location :
Delhi NCR location gives access to a large corporate client and technology professional populations.

Comprehensive Services :
Providing end-to-end technology services from technology development to consulting, and creating multiple revenue streams, which create stickiness with clients.

Increasing Market Opportunities :
The substantial opportunity for growth from India's digital transformation initiatives and across all sectors adopting technology more increasingly.

How to Apply for Ace Alpha Tech Limited IPO?

Step-by-step guide (when IPO opens):

--> Log in to your broker app (Zerodha, Angel One, Groww, etc.)

--> Navigate to the IPO section and select Ace Alpha Tech Limited IPO

--> Click "Apply"

--> Enter:

• Lot size (minimum 1,200 shares)

• Bid price (₹107 or select Cut-Off)

• Your UPI ID

--> Submit the application

--> Approve the UPI mandate in your UPI app (PhonePe, GPay, etc.)

⏰ Important: Mandate must be approved before 5 PM on the same day or before IPO closes.

How to Check Ace Alpha Tech IPO Allotment Status?

You can check allotment status through BSE and the registrar portal once the IPO opens.

Check On BSE

• Visit the BSE official website

• Navigate to the IPO Allotment Section

• Select Ace Alpha Tech Limited IPO

• Enter PAN number or application number

• Submit details to get allotment status

Check On the Registrar Portal

• Visit Skyline Financial Services Private Ltd's website

• Select IPO allotment status

• Choose Ace Alpha Tech Limited IPO

• Enter PAN or application number

• Submit to check status

Company Address

Name : Ace Alpha Tech Limited
Address : A/28 1st Floor, Jhilmil Industrial Area, Shahdara East Delhi, New Delhi, 110095
Phone : +91 8851347242
Email : compliance@acealphatech.in
Website : http://www.acealphatech.in/

IPO Registrar

Name : Skyline Financial Services Private Ltd
Address : D-153A, 1st Floor, Okhla Industrial Area, Phase-I, New Delhi -110020
Phone : +91 2228511022
Email : ipo@skylinerta.com
Website : https://www.skylinerta.com/ipo.php

Lead Manager

Name : Narnolia Financial Services Ltd

Conclusion

Ace Alpha Tech Limited IPO represents a unique investment opportunity in India's fast-growing technology services sector. The company has excellent financial attributes with phenomenal revenue growth, great profitability ratios and has a debt-free balance sheet. A complete technology solutions offering and operations in the digital transformation sector provide competitive advantages.

The company has attained rapid growth from start-up scale to ₹ 12.71 crores revenue in less than three years, outstanding 65%+ profitability, showing good execution and market demand for its services. A zero-debt capital structure and a strong balance sheet also provide financial stability and room for growth.

That said, investors should take into account the competitive environment of the IT services sector, potential client concentration risk, and the volatile nature of SME listings. Investors should also consider the dependence on skilled talent and the continuous upgrading of technology.

At ₹ 107 per share for a technology company with strong fundamentals and growth, the company's pricing seems reasonable without detailed financial projections and analysis of competitive positioning.

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Disclaimer : This analysis is for educational purposes only and should not be considered as financial advice. Please consult with your financial advisor before making any investment decisions. Technology sector investments carry market risks and are subject to regulatory changes.

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