Atlanta Electricals Limited Files DRHP for IPO

Atlanta Electricals Ltd, a Gujarat-based manufacturer of power, auto, and inverter duty transformers, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

Details of the IPO

The IPO consists of a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of 38.11 lakh equity shares by a promoter and other selling shareholders. The offer includes a reservation of equity shares for eligible employees. 

Use of Proceeds

Atlanta Electricals plans to use the proceeds from the IPO for the following:

• Payment of debt.
• Supporting working capital requirements.
• General corporate purposes.

Company Overview

As per Crisil Report, the Company is one of the leading manufacturers of power, auto and inverter duty transformers in India, in terms of production volume as of Fiscal 2024. Atlanta Electricals is capable of producing transformers with a capacity of up to 200 Mega Volt-Amp (MVA) and voltage levels of 220 kilovolts (kV). The company has over 30 years of experience in the transformer manufacturing sector and offers a range of transformers from 5 MVA/11 kV to 200 MVA/220 kV. In 2021, the company secured a significant order for the delivery of eight 80 MVA, 220/33 kV power transformers for the Ultra Mega Solar Park in Andhra Pradesh, supporting India’s renewable energy ambitions. 

Financials

Atlanta Electricals Ltd generated Revenue of ₹867.55 Crores in FY 24 compared to ₹873.88 Crores in FY 23. The revenue of Atlanta Electricals Ltd decreased by approximately 0.72% in FY 24 compared to FY 23. The Company earned a profit of ₹63.36 crores in FY 24 compared to  ₹87.54 crores in FY 23. The profit of the company decreased by -27.63% in FY 24. 

Market Drivers

As per the CRISIL Report, the Indian transformer market is driven by increasing electricity demand, with per capita consumption growing by over 50% in the last decade. Government investments in the renewable energy sector and expansion of the power transmission network are creating growth opportunities for the transformer market.

Book Running Lead Managers

Motilal Oswal Investment Advisors and Axis Capital are the book-running lead managers for the IPO. The company, in coordination with its Book Running Lead Managers (BRLMs), may explore the possibility of raising up to ₹80 crore through a preferential placement or any other legally approved method before filing the Red Herring Prospectus (Pre-IPO Placement). 

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.