Atlanta Electricals IPO Opens: GMP Near 19%. Should You Subscribe?

Even before opening, Atlanta Electricals created strong market buzz, having raised ₹205 crore from anchor investors including big names like Kotak MF, Axis MF, HDFC MF, ICICI Prudential MF, and Pinebridge Global Funds.

IPO Structure

The IPO is a book-built issue, comprising:

• Fresh Issue: 5.3 million shares (~₹287.34 crore)

• Offer for Sale (OFS): 3.8 million shares (~₹400 crore)

Reservation split as per SEBI norms:

• QIBs: up to 50%

• Retail investors: at least 35%

• NIIs: at least 15%

Price Band and Lot Size

• Price Band: ₹718 – ₹754 per share

• Lot Size: 98 shares

• Minimum Investment: ₹14,326 (1 lot)

• Maximum for Retail Investors: 13 lots (₹1.86 lakh approx.)

Grey Market Premium (GMP) Today

Atlanta Electricals IPO is enjoying a healthy premium in the unofficial market. As of today, shares are trading at around ₹896 apiece, implying a GMP of ₹142.

👉 This translates into a potential 19% listing gain over the upper price band of ₹754.

Important Dates

• Issue Closes: September 24

• Basis of Allotment: September 25

• Demat Credit & Refunds: September 26

• Listing on NSE & BSE: September 29

About the Company

Founded as a leader in transformer manufacturing, Atlanta Electricals (AEL) has built a strong reputation in power, auto, furnace, inverter-duty, and generator transformers.

• Manufacturing Strength: 5 plants with a combined installed capacity of 63,060 MVA

• Product Portfolio: 6 categories of transformers with capacity up to 200 MVA and voltage ratings up to 220 kV

• Clients: Well-diversified across industries and geographies

• Order Book: Robust, ensuring future revenue visibility

Use of IPO Proceeds

• Fresh issue proceeds will be used for:

• Repayment/prepayment of borrowings

• Working capital

• General corporate purposes

• OFS proceeds will go to selling shareholders.

Should You Subscribe?

Analysts are cautiously optimistic about the IPO:

• Strong order book gives stability and growth visibility

• Advanced manufacturing facilities and a diverse customer base support resilience

• At the upper price band, valuation comes at P/E 48.8x (FY25 earnings), with EV/EBITDA 30.1x → IPO appears fully priced

Our Take

• For listing gains: With a 19% GMP, Atlanta Electricals IPO may deliver decent short-term upside if grey market sentiment holds.

• For long-term investors: Despite being fully priced, the company operates in a crucial sector (power infrastructure), backed by strong order flow and advanced manufacturing. This makes it an attractive long-term growth story.