Atlanta Electricals IPO: 7 Key Points Before you apply for this IPO
The Atlanta Electricals IPO is open for subscription. After a thorough review, I will be applying for this IPO, focusing on small-to-reasonable listing gains with a clear eye on the long-term story. This company has made strategic moves that are set to redefine its growth trajectory. Here’s a breakdown of the seven key factors behind my decision.
1. Strong Order Book & Clients
Atlanta Electricals comes with a strong foundation. The company has supplied over 4,400 transformers and has an impressive current order book of ₹1,600 Cr. This order book is highly visible, with 82% of the orders coming from Public Sector Undertakings (PSUs), particularly state transmission companies. Their client list includes industry giants like GETCO, Adani Green, Tata Power, and SMS India, which speaks volumes about their reputation and quality in the market.
2. Massive Capacity Expansion
This is arguably the most significant growth driver. The company’s previous capacity of 16,740 MVA has been dramatically expanded to a staggering 63,060 MVA—a nearly four-fold increase. This was achieved through:
- A new greenfield facility in Vadod, Gujarat, with a capacity of 30,540 MVA.
- The acquisition of BTW-Atlanta Transformers, adding 15,780 MVA.
3. Financials & Valuations
Atlanta has shown strong revenue growth, from ₹877 Cr in FY23 to ₹1,250 Cr in FY25, with stable margins. The acquisition of BTW-Atlanta, which posted losses in FY25, may create some short-term volatility. However, the long-term picture is very promising. My estimates show a potential PAT of ₹160 Cr in FY26 and ₹280-300 Cr in FY27.
The IPO is priced at a P/E of 48.9x based on FY25 earnings. While this seems high compared to a peer like Voltamp (22.3x), it is reasonable when viewed against TARIL (74.6x). The real value lies in the future, with a projected FY27E P/E of 18-20x, suggesting a potential 60% upside if execution remains strong.
| Particulars | Details |
|---|---|
| Issue Dates | September 22 - 24, 2025 |
| Price Band | ₹718 - ₹754 per share |
| Issue Size | ₹687 Cr (Fresh: ₹400 Cr, OFS: ₹287 Cr) |
| Lot Size | 19 shares (~₹14,326) |
4. Strategic Debt Repayment & Working Capital
A significant portion of the fresh issue is allocated to debt repayment (₹79.1 Cr) and working capital (₹210 Cr). In an interview, management indicated that a large portion of the General Corporate Purposes (GCP) funds may also be used for further debt repayment. This aggressive deleveraging strategy will reduce finance costs and strengthen the balance sheet, providing a stable platform for growth.
5. Key Risks to Consider
- High PSU Exposure: The company's reliance on state transmission companies can lead to high trade receivables and delayed payments.
- Short-Term Volatility: The recent acquisition may negatively impact the bottom line in the first half of FY26 until the new facility reaches optimal utilization.
- Margin Pressure: Margins may remain stable but may not expand significantly in the near term due to high initial costs associated with the specialized 765 kV class technology.
6. Key Dates & Details
Here are the important dates to remember for the IPO:
- IPO Open Date: September 22, 2025
- IPO Close Date: September 24, 2025
- Allotment Date: September 25, 2025
- Refund Date: September 26, 2025
- Demat Credit Date: September 26, 2025
- Listing Date: September 29, 2025
Allotment status can be checked on the IPOwiz App, registrar's website, MUFG Intime India Private Limited, or on the BSE website.
7. Final Verdict
Atlanta Electricals is a well-established company entering a new phase of growth. Its strategic capacity expansion and focus on high-rated transformers position it in a high-demand, low-competition segment. While some near-term risks exist, the company’s deleveraging plan and strong order book create a compelling long-term investment case. I am applying for this IPO with a long-term perspective.
Frequently Asked Questions (FAQs)
1. What is the business of Atlanta Electricals Limited?
Atlanta Electricals is a manufacturer of power, auto, and inverter duty transformers, with new capabilities to produce high-rated transformers up to 765 kV.
2. What is the issue size and price band of the Atlanta Electricals IPO?
The IPO is for ₹687.34 crore, with a price band of ₹718 to ₹754 per share.
3. When will the shares be listed?
The shares are tentatively scheduled to be listed on BSE and NSE on September 29, 2025.
4. What are the key risks of investing in this IPO?
Key risks include high exposure to government utilities, short-term volatility due to a recent acquisition, and rising trade receivables.
5. How can I check Atlanta Electricals allotment status?
You can check the allotment status on the IPOwiz App, MUFG Intime India Private Limited, or on the BSE website after the allotment date on September 25, 2025.
6. What is the purpose of the IPO proceeds?
The funds from the fresh issue will be used primarily for debt repayment and to meet the company's working capital requirements.