Advanced Sys-Tek files draft papers with SEBI to raise funds via IPO

The proceeds from the fresh issue will be allocated towards capital expenditure and long-term working capital requirements

Advanced Sys-Tek Ltd has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

It includes a fresh issue at Rs 115 crore and an offer for sale (OFS) of up to 1.53 million shares by existing promoters and shareholders. Promoters Mukesh R Kapadia and Umed Amarchand Fifadra will each offload up to 7.64 lakh shares in the OFS.

The proceeds from the fresh issue will be allocated towards capital expenditure and long-term working capital requirements. Inga Ventures and Sowilo Capital Advisors will act as the book-running lead managers for the IPO.

With over 30 years of expertise, Advanced Sys-Tek specializes in delivering large-scale measurement, control, and industrial automation solutions. The company focuses primarily on Industrial Automation Solutions (IA Solutions), including fully automated metering systems for oil and gas terminals and upgrades for manually operated facilities. As of September 30, 2024, it has completed over 200 installations across India and international markets.

The company provides end-to-end automation solutions for petroleum, oil, and lubricant (POL) storage and distribution terminals, including terminal automation (TA) and custody transfer metering of hydrocarbons. It also supplies metering skids for precise gas flow measurement in pipelines. Additionally, the company has executed automation projects for LPG bottling plants and is currently working on fuel farm automation at Indian airports.

For FY24, Advanced Sys-Tek reported revenue of Rs 188.23 crore, up from Rs 140.42 crore in the previous year. Net profit stood at Rs 19.22 crore compared to Rs 13.17 crore in FY23. As of September 2024, its order book was valued at Rs 267.91 crore, an increase from Rs 203.42 crore in FY23.