At a Glance

Ace Alpha Tech Ltd, a B2B trading tech + consultancy + proprietary trading platform with just 9 employees, is coming to BSE SME with a ₹32.22 crore IPO (June 26–30, 2025). With 95% EBITDA margins and 71% PAT margins, this Delhi-based “alpha” firm claims to have unlocked god-mode in financial operations. But is this alpha for real or just another puffed-up PPT pitch?

🧾 1. What Does Ace Alpha Actually Do?

Three words: Trading Tech Consultancy. But with a twist.

🧠 Services:

• Institutional trading tools (think Order Management Systems for funds)
• B2B trading platforms for brokers
• Proprietary trading systems (they trade too!)
• User management & risk tools (KYC, compliance, fraud detection)
• Consulting for accounting, audit, and market research

📍 In short: They’re the back-office backbone for financial services clients.

💼 Who do they serve?
Institutions, brokers, trading firms, and “retail businesses” through B2B tech platforms.

👥 Team: Just 9 full-time employees as of March 2024. (Let that sink in.)

💸 2. IPO Ka Breakdown

🚀 Anchor Book: ₹9.11 Cr already raised
🔄 Listing Platform: BSE SME
🔋 Use of Proceeds: Vague terms like “Capital Expenditure” and “Unidentified Acquisitions” — zero clarity in RHP.

📉 3. Financials – 🤯 Margins from Another Dimension?

🥇 FY24 Margins:

• PAT Margin: 70.81%
• EBITDA Margin: 95.98%
• ROCE: 109.31%
• RoNW: 47.91%
• Debt: NIL

📣 Cue drumroll: This is the most margin-rich startup ever. Beats Apple. Beats Google. Beats God.

But also, red flag.

Either they’ve built a miraculous trading engine with zero costs… or someone’s financial Photoshop skills are Olympic level.

🔍 4. Valuation Check: Alpha Ya Andha?

• EPS (Post IPO): ₹6.43
• P/E at ₹69: 10.73x
• Book Value: ₹69.01 → P/B = 1.00x
• Market Cap: ₹121.15 Cr

📉 At first glance, 10.7x P/E is not bad. But with zero recurring customer data, no identified acquisition target, and barebones manpower, it screams over-optimized financial engineering.

🎯 EduFair Value Estimate: ₹45–₹58

• At 8x normalized EPS = ₹51
• At 0.9x Book = ₹62
• Fair Value Band: ₹45–₹58

Current Ask = ₹69
⚠️ Overpriced by 15–30%, especially for a ghost-staffed fintech SME.

🧑‍💼 5. Promoters & Their Mysterious Alpha

Promoters:

• Gaurav Sharma
• Arika Securities Pvt Ltd

Pre-IPO holding: 55.80%
Post-IPO: 43.90%

🎓 Background: Not disclosed
🧍 No details on founding team, product leadership, or institutional clients.

🤔 They claim to serve institutional and proprietary clients… but no names are revealed.

👨‍💻 9 Employees doing all of this? Really?

🧠 6. Red Flags – Alpha, Beta, Lag?

🚩 Profitability is too high to be true (even SaaS doesn’t give 95% EBITDA)

🚩 No product demo, screenshots, client list, or pricing model shared

🚩 No detail on how “consulting” and “trading systems” are monetized separately

🚩 “Unidentified acquisition” = give us money, trust the vibes

🚩 IPO has OFS = some early holders are cashing out already

🧪 7. EduInvesting Verdict: Quant Tech? Or Quant Trick?

👎 What we don’t like:

• ❌ Unbelievable margins
• ❌ Tiny team with giant claims
• ❌ High ticket size (₹1.38L retail)
• ❌ Lack of transparency on tech, clients, or operations
• ❌ OFS in a 2-year profit ramp-up story

👍 What we grudgingly respect:

• ✅ Capital-efficient, asset-light model (if real)
• ✅ 10x P/E still looks okay if earnings are actually sustainable
• ✅ Strong ROCE/ROE figures
• ✅ Decent anchor interest

Final Take: This IPO Has More Questions Than Alpha

If you believe in 9-person miracle factories that run billion-dollar trading infra with 95% margins — go for it.

If you’re the cautious type who likes seeing code, customers, and credibility — maybe skip.

In this market, alpha sells. But make sure you’re not buying fictional financial modelling.

🧾 Tags: Ace Alpha Tech IPO, Trading Platform SME IPO, Delhi SME IPO 2025, Proprietary Trading Tech IPO, Narnolia IPOs, EduInvesting IPO Satire

✍️ Written by Prashant | 📅 June 23, 2025