Atlanta Electricals files IPO draft papers with SEBI, Aiming for an IPO launch

Atlanta Electricals, one of the leading manufacturers of power, auto, and inverter duty transformers in India took a significant step towards growing its company and submitted its DRHP with capital market regulator SEBI in order to raise funds through IPO (Initial Public Offering).

This IPO comprises a combination of fresh issues worth Rs.400 crores and an Offer-for-Sale of up to 38.11 lakh equity shares with a face value of Rs.2 each. 

The primary goal behind raising funds through this IPO is the use the proceeds for the growth of the company. The proceeds raised through this IPO will be used for the repayment and prepayment of the existing borrowings from the company and will be utilized in the funds to handle the daily expenses of the business and at last, the remaining funds will be used for the company’s general corporate purposes.

The promoters of the company are Krupeshbhai Narharibhai Patel, Niral Krupeshbhai Patel, Amish Krupeshbhai Patel, Tanmay Surendrabhai Patel, Narharibhai S. Patel Family Trust, Patel Family Trustee Private Limited, Niral Patel Family Trust, Amish Patel Family Trust, Tanmay Patel Family Trust, and ATLANTA UHV TRANSFORMERS LLP. 

The lead managers of this public issue are Motilal Oswal Investment Advisors Limited and Axis Capital Limited.

The Offer-for-sale component includes Rs.3,810,895 equity shares, in which multiple shares will be going to sell by many stakeholders:

• Atlanta UHV Transformers LLP will sell up to 435,900 equity shares.
• Hemang Harendra Shah will be selling shares of up to 666,560 equity shares 
• Nimish Harendra Shah will sell up to 777,185 equity shares in the company
• Dhaval Harshadbhai Mehta jointly with  Avanee Dhavalbhai Mehta will sell 217,500 equity shares
• Gitaben Harshadbhai Mehta jointly with Harshadbhai Amrita will sell up to 326,250 equity shares. 
• At last Jignesh Suryakant Patel will sell up to 1,387,500 equity shares in the company.

Atlanta Electricals incorporated on 15 Dec 1988, is one of the growing companies in the sector of power, auto, and inverter duty transformers in India. Currently, there is a rising demand for modern transformers from various sectors like data centers and EV charging networks. As these industries keep rising, they will keep pressure on the grid capacity and resiliency, necessitating the deployment of new, modern transformers. The company said they are one of the few companies that manufacture transformers up to 200 Mega Volt-Amp (“MVA”) capacity and 220 kilovolts (“kV”) voltage. 

This public issue will be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). 

In the six-month period that ended on September 30, 2024, Atlanta Electricals generated a revenue of ₹5,701.41 million from operations, while the company generated revenue of ₹517.28 million of Profit after Tax, respectively.

Atlanta Electricals IPO Prospectus:

Atlanta Electricals Company Financial Report

Amount ₹ in Crores

Atlanta Electricals IPO Valuation – FY2024

Atlanta Electricals IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.

Peer Group Comparison

Objects of the Issue

• Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by our Company;
• Funding working capital requirements of our Company; and
• General corporate purposes.

IPO Lead Managers aka Merchant Bankers

• Motilal Oswal Investment Advisors Limited
• Axis Capital Limited