Atlanta Electricals IPO Review 2025: Should You Subscribe?
Atlanta Electricals IPO opens Sept 22-24, 2025. Get a detailed review of the IPO, including price band (₹718-754), financials, and listing gain expectations. Learn if this transformer manufacturer’s IPO is a good investment.
Company Background
Incorporated in 1988, Atlanta Electricals Limited specializes in manufacturing a wide range of transformers, including power, auto, and inverter-duty transformers. The company has over three decades of experience and a strong presence across 19 states and three Union Territories in India. It operates multiple manufacturing facilities in Gujarat and Karnataka. The company’s diverse customer base includes prominent names like Gujarat Energy Transmission Corporation (GETCO), Adani Green Energy, and TATA Power. Atlanta Electricals also exports its products to international markets, including the US, Kuwait, and Oman.
Company Financials
Atlanta Electricals has demonstrated robust financial growth in recent years. Its revenue from operations increased from ₹876.66 crore in FY23 to ₹1,250.49 crore in FY25, a growth of approximately 43%. Similarly, its profit after tax (PAT) has also seen a significant jump, rising by 87% from ₹63.36 crore in FY24 to ₹118.65 crore in FY25. The company’s financial performance is further highlighted by its strong return ratios, with a Return on Equity (ROE) of 33.91% and a Return on Capital Employed (ROCE) of 39.43% in FY25, which are superior to industry benchmarks.
IPO Details and Financials
Here’s a comprehensive breakdown of the Atlanta Electricals IPO and its financial performance, based on the company’s Red Herring Prospectus (RHP) and other public information.
IPO Details
- IPO Dates: The IPO is scheduled to open for subscription on September 22, 2025, and will close on September 24, 2025.
- Listing Date: The shares are tentatively set to be listed on the BSE and NSE on September 29, 2025.
- Price Band: The company has set the price band at ₹718 to ₹754 per equity share.
- Lot Size: Retail investors can apply for a minimum of 19 shares, with an investment amount of ₹14,326 at the upper price band.
- Issue Size: The total IPO size is ₹687.34 crore. This is a combination of a fresh issue of shares and an Offer for Sale (OFS).
- Fresh Issue: ₹400 crore, which will be used by the company for specific purposes.
- Offer for Sale: ₹287.34 crore, where existing shareholders will sell a portion of their stake.
- Objectives of the Issue: The funds raised from the fresh issue will be primarily used for:
- Repayment or prepayment of certain outstanding borrowings.
- Meeting working capital requirements.
- General corporate purposes.
- Promoter Holding: The promoter holding pre-issue stands at 94.36%. Post-issue, this will be diluted.
- Book Running Lead Managers: Motilal Oswal Investment Advisors and Axis Capital.
- Registrar: MUFG Intime India Pvt Ltd.
Financial Performance
Atlanta Electricals has demonstrated strong financial growth over the past few years. Here are the key consolidated financial figures (in ₹ crore):
| Particulars | FY25 | FY24 | FY23 |
| Total Income | 1,250.49 | 872.05 | 876.66 |
| Profit After Tax (PAT) | 118.65 | 63.36 | 87.54 |
| EBITDA | 199.88 | 123.16 | 143.12 |
| Net Worth | 349.90 | 228.47 | 164.90 |
| Total Borrowings | 141.03 | 48.60 | 73.09 |
| EPS (in ₹) | 16.57 | 8.87 | 12.22 |
| ROE | 33.91% | 27.80% | 53.08% |
| ROCE | 39.43% | 42.38% | 57.99% |
| P/E (at upper price band) | 46.3x | – | – |
Key Highlights of Financials:
- Revenue Growth: The company’s revenue from operations saw a significant increase of approximately 43% between FY24 and FY25.
- Profitability: The profit after tax (PAT) more than doubled from FY24 to FY25, growing by 87%.
- Return Ratios: Atlanta Electricals maintains a strong return on equity (ROE) and return on capital employed (ROCE), which are indicators of efficient management and profitability.
- Order Book: As of March 31, 2025, the company had a robust order book of ₹1,642.96 crore, providing strong revenue visibility for the coming years.
Comparison with Peers
Atlanta Electricals operates in a competitive industry with established players like Voltamp Transformers Ltd. and Transformers and Rectifiers (India) Ltd. While Atlanta Electricals is smaller in scale, with FY25 revenue of ₹1,244 crore compared to Voltamp’s higher revenue, it boasts superior return ratios. The company’s IPO valuation, with a P/E ratio of approximately 46.3x at the upper price band, is higher than some peers like Voltamp (22.15x) but is in line with or lower than others like Transformers & Rectifiers (69.97x). This premium valuation is justified by its strong growth trajectory and high return metrics.
Pros & Cons
Pros
- Strong Financial Performance: The company has shown consistent and rapid growth in both revenue and profitability.
- Healthy Order Book: With an order book of ₹1,642.96 crore as of March 31, 2025, the company has strong revenue visibility.
- Experienced Management: The management team has extensive experience in the transformer industry.
- High Return Ratios: The company’s ROE and ROCE are significantly higher than its peers, indicating efficient capital utilization.
Cons
- High Valuation: The IPO is aggressively priced with a P/E ratio higher than some of its peers.
- Customer Concentration Risk: A significant portion of its revenue is dependent on a few large customers.
- Dependence on Government Contracts: The business is heavily reliant on government-owned entities and competitive tendering processes.
- Raw Material Price Volatility: Fluctuations in the prices of key raw materials like copper and steel could impact profitability.
Listing Gain Expectation
The grey market premium (GMP) for Atlanta Electricals IPO has been positive, with a reported GMP of around ₹137 to ₹154 per share. This suggests a potential listing gain of 18% to 20% over the issue price. However, GMP is an informal indicator and should not be the sole basis for investment decisions. The strong fundamentals, positive industry outlook, and favorable market sentiment towards the power sector suggest a good probability of a positive listing.
Conclusion
Atlanta Electricals Limited’s IPO presents a compelling opportunity for investors looking to capitalize on India’s booming power and infrastructure sector. While the IPO is priced at a premium, this is supported by the company’s robust financial performance, superior return ratios, and a strong order book. The proceeds from the IPO are aimed at debt reduction and working capital, which should further strengthen the company’s financial position. For long-term investors with a high-risk appetite, the company’s growth potential and strategic positioning make it a worthwhile consideration.
(Disclaimer: Recommendations, suggestions, views, and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
