Non-institutional investors drove enthusiasm and subscribed to the issue 2.66 times, followed by the retail investors, who have subscribed to the issue 1.8 times. In the meantime, the qualified institutional buyers (QIBS) have requested 26.25.762 shares of the company against the 18.05.134 shares reserved for them, making a subscription of 1.45 times.
The issue opened for subscription on September 22 and will be closed on 24 September. The public song is appreciated on RS 687 Crore and includes a new number of RS 400 Crore together with an offer-for-sale (OFS) component of RS 287 Crore.
The price band was set between RS 718 and RS 754 per share, with a minimum application size of 19 shares.
The net proceeds from the new issue is reserved for reimbursement of existing loans, financing of work capital requirements and other general business purposes. After the issue, the promoter shareholding is expected to fall from 94% to 83%.
About Atlanta Electrics
With an inheritance of more than 30 years, Atlanta Electrics is one of the most important transformer manufacturers of India. The company has scaled its production options to produce transformers with capacities up to 500 MVA and 765 kV. It is suitable for both customers of public and private sector, with public sector companies that contribute more than 80% of the total order book. On March 31, 2025, the orderbook of the company RS was 16,430 million.
Atlanta Electrics Financial Performance
In FY25, Atlanta Electrics yielded strong growth, with a turnover that rises 43% year on year to RS 12,442 million. The profit after the tax rose to RS 1,186 million from RS 634 million in FY24. The EBITDA margin improved to 16%, and the return on equity was a robust 33.9%. At the top of the price band, the IPO from Atlanta Electrics is priced on a p/e -multiple of 48.8x FY25 income and an EV/EBITDA of 30.1x.
The Macro environment for Transformers is promising, powered by the increasing demand for electricity, integration of renewable energy, EV loading infrastructure and high-speed projects. Atlanta Electrics has approvals from large institutions such as the Power Grid Corporation of India and the Ministry of Spoorwegen, which improves the future visibility of the income.
Which analysts say about Atlanta Electrics IPO?
Anand Rathi Research has given the IPO of Atlanta Electrics a recommendation “Subscribe in the long term”. Despite the fact that the appreciation was noted as fully priced, the brokerage emphasized the robust order book of the company, the diversified product range and the strong positioning in a growth-oriented sector.
Furthermore, Geojit Investments recommends a ‘subscribe’ with a long -term investment perspective for the issue.
“At the upper price band of RS 754, AEL is available with a p/e ratio of 49x (FY25 diluted basis) and Premium seems to be ael’s strong fundamentals, healthy efficiency ratios, capacity expansion, robust order book and strategic initiatives supporting the valuation.
(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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