IPO Details
- IPO Opening: September 22, 2025
- IPO Closing: September 24, 2025
- IPO Size: ₹687.34 Crores (Fresh Issue of ₹400 Crores and Offer for Sale of ₹287.34 Crores)
- IPO Price Band: ₹718 to ₹754 per share
- Lot Size: 19 Shares
- Investor Allocation: QIBs:50%, NIIs: 15%, Retail: 35% of the Net Offer.
- Lead Managers: Motilal Oswal Investment Advisors Ltd. and Axis Capital Ltd.
- Registrar: MUFG Intime India Pvt Ltd.
About the Company
- Atlanta Electricals Limited, incorporated in 1988, is a leading manufacturer of power, auto, and inverter duty transformers in India by production volume.
- With over 30 years of experience, the company supplies its products to power utilities, private players, and renewable energy projects across the country.
- It has a strong domestic presence and also exports to countries like the US, Kuwait, and Oman.
- Main Products: Power transformers, inverter-duty transformers, furnace transformers, generator transformers, and special duty transformers.
- Manufacturing Units: Five manufacturing facilities across Gujarat and Karnataka, of which four are operational.
- Employees: 311 employees on its payroll as of March 31, 2025.
- Promoters: Niral Krupeshbhai Patel, Amish Krupeshbhai Patel, Tanmay Surendrabhai Patel, and various associated family trusts and an LLP.
- Network: The company has a customer base in 19 states and three union territories in India.
Financials
The company’s consolidated financial performance for the last three fiscal years is as follows:
| Particulars | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Revenues (₹ Cr) | 1,244.18 | 867.55 | 873.88 |
| EBIDTA (₹ Cr) | 199.88 | 123.16 | 143.12 |
| EBIDTA Margin (%) | 16.07 | 14.20 | 16.38 |
| Net Profit (₹ Cr) | 118.65 | 63.36 | 87.54 |
| Net Profit Margin (%) | 9.54 | 7.32 | 10.01 |
Source: RHP
Post-IPO Market Cap: ₹5797.49 crore. P/E FY24: 91.50 times. P/E FY25: 48.87 times.
The company posted nearly static top lines for FY23 and FY24, while its net profit declined in FY24. However, it showed significant growth in its top and bottom lines in FY25. Management attributed the FY24 performance to one-time provisions and production disruptions related to an acquisition and expansion.
Salient points
- Use of Funds: The net proceeds will be used for repayment/prepayment of certain borrowings (₹79.12 crore), funding working capital requirements (₹210.00 crore), and for general corporate purposes.
- Business Scenario: The transformer market is growing due to rising electricity demand, industrialization, and government initiatives promoting renewable energy and power infrastructure modernization. High-growth end markets like data centers, EV charging networks, and railways are creating a surge in demand.
- Growth Strategies: The company plans to significantly expand its manufacturing capacity to 63,060 MVA, focus on backward integration, and venture into higher rating transformers (up to 765 kV). It also aims to expand its customer base beyond India and increase its market share through improved utilisation levels.
- Risks: Key risks include a high valuation compared to industry peers, high dependence on its top 10 customers and suppliers, and significant revenue concentration from its manufacturing facilities in Gujarat.
- Litigations: There are outstanding legal proceedings against the company and its subsidiaries, with aggregate amounts involved of ₹71.73 crore and ₹136.66 crore, respectively.
- Revenue Split (Region): For Fiscal 2025, 98.88% of the company’s revenue was generated from its manufacturing facilities located in Gujarat.
- Revenue Split (Product): In FY25, power transformers constituted 73.60% of revenue from operations, while inverter duty transformers and auto transformers contributed 10.7% and 11.1% respectively.
- Capacity Utilisation: The total capacity utilisation for FY25 stood at 98.28%.
- Order Book: As of March 31, 2025, the company’s order book was ₹16,429.58 crore, with 82.08% from state electricity companies.
- Clients: Prominent customers include Gujarat Energy Transmission Corporation Limited (GETCO), Adani Green Energy, TATA Power, and SMS India.
- Working Capital: The net working capital days for the company in FY25 were 65 days.
- Receivables: The normal receivable cycle for the company is between 90 to 110 days.
Anchor Issue
- Total amount raised from anchor investors: ₹204.7 crore
- Number of anchor investors: 11
- The top anchor investors in the Atlanta Electricals IPO, with their percentage allocations, are Kotak AMC (13.5%), Axis Mutual Fund (9.2%), Pinebridge Global Funds (8.8%), HSBC MF (7.6%), Nippon India (7.1%), Allianz Global Investors Fund (6.9%), Ashoka Whiteoak (6.4%), HDFC Mutual Fund (6.2%), ICICI Prudential Life Insurance (5.8%), and Valuequest India (5.3%).Goldman Sachs (5.2%).
Peers
A comparison with listed industry peers as per RHP:
| Name of the company | Face Value (₹) | P/E Ratio | RoNW (%) | NAV (₹ per share) |
|---|---|---|---|---|
| Atlanta Electricals Limited | 2.00 | NA | 33.91% | 48.88 |
| Voltamp Transformers Limited | 10.00 | 22.15 | 20.50% | 1,569.24 |
| Transformers and Rectifiers India Limited | 1.00 | 69.97 | 17.29% | 41.71 |
| Danish Power Limited | 10.00 | 25.80 | 18.00% | 162.50 |
Financial data is for FY2025 on a consolidated basis. Peer P/E ratios are as of September 11, 2025. Source: RHP.
Management Commentary
- Management states that demand in the power sector is quite huge and is expected to remain strong for the next five to seven years, driven by data centers, railways, and EVs.
- The company is quadrupling its manufacturing capacity from 16,600 MVA to 63,000 MVA with two new plants, aiming to become one of India’s largest transformer manufacturers.
- A key strategy is venturing into higher-rating transformers (400 kV and 765 kV) to tap into the central transmission market, where there is a shortage of supply.
- The company is well-positioned in the renewable energy space, with inverter duty transformers for solar applications constituting 10-12% of the order book.
- The management is also looking at export markets to ensure stable margin growth in the future.
Opinion
I will apply for the IPO.
- Strong Growth & Industry Tailwinds: The company has demonstrated strong financial growth, with revenue and profit showing significant increases in FY25, and is well-positioned to benefit from the rising demand in the power and renewable energy sectors.
- Capacity Expansion: A four-fold increase in manufacturing capacity and entry into ultra-high voltage transformer segment.
- Robust Order Book: A healthy order book of over ₹16,429 crore provides revenue visibility for future.
- Atlanta Electricals’ profit for FY25 saw a downward pressure from a loss from the acquisition of BTW-Atlanta Transformers India Pvt Ltd, whose operations contributed a net loss around Rs. 14 crore in FY25. Revenue was not yet reflected or was negligible for the year. The plant acquired is expected to see a turnaround starting FY26, and the addition of large manufacturing capacity starting from FY26.
- Post IPO equity capital: ₹15.38 crore, P/E for FY 24: 91.50 times, P/E FY25: 48.87 times.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.