Atlanta Electricals IPO Subscription Update
The Atlanta Electricals IPO witnessed robust participation from investors as bidding progressed into Day 3. By the end of Day 2, the issue was subscribed to 3.07 times overall, indicating healthy demand across all investor segments.
Retail Individual Investors (RIIs) subscribed 2.94 times the allotted 32.59 lakh shares, reflecting strong interest from small investors.
Non-Institutional Investors (NIIs) showed even stronger enthusiasm, subscribing 5.55 times the reserved 13.96 lakh shares.
Qualified Institutional Buyers (QIBs) also participated actively, with subscriptions at 1.48 times the allocated 18.05 lakh shares.The strong subscription numbers suggest growing investor confidence ahead of the IPO’s closing.
Atlanta Electricals IPO GMP Today
In the grey market, Atlanta Electricals’ shares are trading at a 13% premium over the issue price of Rs 100. This suggests strong investor sentiment and positive expectations ahead of the stock’s listing, with the premium reflecting upbeat demand in unofficial trading channels.
Atlanta Electricals IPO: Issue Details and Key Dates
The Atlanta Electricals IPO is a book-built issue totalling Rs 687.34 crore, comprising a fresh issue of Rs 400 crore and an offer for sale (OFS) amounting to Rs 287.34 crore.
The Atlanta Electricals IPO opened for subscription on September 22 and will close on September 24. The total issue size stands at Rs 687 crore, comprising a fresh issue of Rs 400 crore and an offer-for-sale (OFS) worth Rs 287 crore.
The price band has been set between Rs 718 and Rs 754 per share, with a minimum application size of 19 equity shares.
Proceeds from the fresh issue will be used for repayment of existing borrowings, funding working capital needs, and general corporate purposes. Post-issue, the promoters’ shareholding is expected to decline from 94% to 83%.
About Atlanta Electricals
With a legacy of over 30 years, Atlanta Electricals has established itself as one of India’s leading transformer manufacturers. The company has significantly scaled its operations, with the capability to produce transformers up to 500 MVA and 765 kV. It serves a diverse client base across both the public and private sectors, with public sector undertakings (PSUs) accounting for over 80% of its total order book. As of March 31, 2025, the company’s order book stood at Rs 16,430 million.
Financial Performance
In FY25, Atlanta Electricals delivered robust growth, with revenue increasing 43% year-on-year to Rs 12,442 million. Profit after tax rose sharply to Rs 1,186 million, up from Rs 634 million in FY24. The company also reported a healthy EBITDA margin of 16% and a strong return on equity (RoE) of 33.9%.
At the upper end of the IPO price band, the issue is valued at a P/E multiple of 48.8x FY25 earnings and an EV/EBITDA multiple of 30.1x.
Industry outlook
The outlook for the transformer industry remains favourable, supported by rising power demand, renewable energy integration, the expansion of EV charging infrastructure, and investments in high-speed rail projects. Atlanta Electricals is well-positioned to benefit from this growth, backed by approvals from key institutions such as the Power Grid Corporation of India and the Ministry of Railways, which enhance its revenue visibility and market credibility.
What analysts are saying about Atlanta Electricals IPO
Anand Rathi Research has assigned a “Subscribe – Long Term” rating to the Atlanta Electricals IPO. While the brokerage acknowledges that the IPO is fully priced, it emphasised the company’s strong order book, diverse product portfolio, and solid positioning within a high-growth sector as key strengths.
Similarly, Geojit Financial Services has also recommended a ‘Subscribe’ rating for long-term investors.
In its report, Geojit noted: “At the upper end of the price band (Rs 754), Atlanta Electricals is valued at a P/E of 49x on FY25 diluted earnings, which is at a premium compared to peers. However, its robust fundamentals, healthy return ratios, ongoing capacity expansion, and strategic initiatives—combined with a strong order book—justify the valuation, making it an attractive bet for long-term investors aligned with India’s growing power infrastructure demand.”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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