Atlanta Electricals IPO: Strong Order Book, Premium Valuation - Should You Subscribe?

Atlanta Electricals Limited, one of India’s leading transformer manufacturers, has launched its ₹687.34 crore IPO, which is open from September 22 to September 24, 2025. The issue consists of a Fresh Issue of ₹400 crore and an Offer for Sale worth ₹287.34 crore. Its shares are priced in the range of ₹718-₹754 per share with a lot size of 19 shares. The GMP sits at ₹125, translating into a 16.5% gain over the issue price - showing good early interest, though GMP is always unofficial and can change quickly.

In this analysis, we break down Atlanta Electricals’ business model, IPO objectives, financial strengths and risks, valuation, peers, leadership, and industry outlook. By the end, you will have a clear picture of the company, what this IPO means, and whether it fits into your investment decision-making.

IPO Overview

• IPO Date: September 22 to September 24, 2025
• Total Issue Size: ₹687.34 crore
• Price Band: ₹718 to ₹754 per share
• Lot Size: 19 Shares
• Tentative Allotment Date: September 25, 2025
• Listing Date: September 29, 2025 (Tentative)
• GMP: The GMP for Atlanta Electricals IPO is ₹125, reflecting a 16.58% gain over the issue price, according to Chittorgarh.com (as of September 22).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

What Does Atlanta Electricals Do?

Atlanta Electricals makes transformers - those heavy-duty machines that manage and transfer electricity safely across different voltage levels. Its range goes from 5 MVA/11 kV units up to 500 MVA/765 kV, covering almost all needs of the power sector.

It serves 208 customers, including 21 government entities and 187 private players. Major clients include Gujarat Energy Transmission Corporation and Adani Green Energy. While it supplies across 19 states and 3 UTs, almost all of its revenue (98.88%) comes from facilities in Gujarat. With strong growth in transmission, renewable power, and mobility sectors, the company has built itself around high-capacity manufacturing, customized products, and after-sales support.

Objectives of the IPO

Atlanta Electricals will use the IPO money for:

• ₹79.12 crore: To repay/prepay borrowings, mainly a ₹50 crore term loan from Tata Capital.
• ₹210 crore: To fund increased working capital, split across FY26 and FY27.
• Remaining funds: For general corporate purposes such as marketing, branding, and growth initiatives.

Strengths:

• Large manufacturing capacity: With the commissioning of the Vadod Unit in July 2025, capacity jumped from 16,740 MVA to 47,280 MVA.
• Strong order book: Orders worth ₹1,643 crore as of March 31, 2025, equivalent to 1.32 times FY25 revenue.
• Good utilization levels: Nearly 98% capacity utilization in FY25, showing strong demand and efficient asset use.
• Growing customer wallet share: Average order value doubled in two years, reaching ₹34.18 crore in FY25.
• Healthy returns: ROE of 33.91% - this means for every ₹100 shareholders invested, the company generated ₹33.91 profit. ROCE stood high at 39.43%.
• Balanced finances: Debt-to-equity ratio at 0.40, indicating low leverage relative to growth.
• Financial growth: Revenue grew from ₹874 crore in FY23 to ₹1,244 crore in FY25, a CAGR of 19.3%.

Risks:

• Regional concentration: Almost all revenue comes from Gujarat plants. Local disruptions may hit operations.
• Customer dependency: Top 10 customers made up 74% of revenue in FY25. The largest, GETCO (Gujarat Energy Transmission Corporation Limited), alone accounts for 29%.
• Tender reliance: Heavy dependence on government contracts, where success dropped from 25% in FY23 to 18% in FY25.
• Lower margins vs peers: EBITDA margin at 16% compared to peer Voltamp (23.3%).
• Raw material risk: No long-term supply deals for copper and steel, making profits vulnerable to price swings.
• Financial record gaps: Missing filings and contingent liabilities worth ₹151 crore raise governance and compliance questions.

For detailed information, visit Atlanta Electricals’ IPO page.

Peer Comparison

The company competes with Voltamp Transformers, Transformers & Rectifiers, and Danish Power.

Source: RHP, Internal calculations

• Revenue of ₹1,244 crore in FY25 makes Atlanta smaller than Voltamp (₹1,934 crore) and TRIL (₹2,019 crore), but ahead of Danish Power (₹427 crore).
• ROE is the best among peers - Atlanta at 33.9% vs 17-20% for others.
• The order book is stronger than Voltamp and Danish Power but much smaller than TRIL.
• Margins lag behind - 16% EBITDA vs peers ranging 18-23%.

Who’s Making Money via the IPO OFS: Selling Shareholders

Out of the total ₹687.34 crore IPO of Atlanta Electricals, ₹287.34 crore comes through an Offer for Sale (OFS). This means some promoters and investors are cashing out part of their stake, while the company will not get any money from this portion.

One Promoter Selling Shareholder and five other shareholders are participating in the OFS. Here are the key details:

Atlanta UHV Transformers LLP (Promoter Selling Shareholder) is selling 4.36 lakh shares worth ₹32.9 crore. Since its average cost of holding was only ₹13.29 per share, it will be booking healthy gains. This entity is also linked to the key promoters Niral, Amish, and Tanmay Patel.

Hemang Harendra Shah is cashing out ₹50.3 crore. His cost of acquisition was just ₹7.50 per share, which means his exit value is almost 100 times higher than the cost.

Nimish Harendra Shah is selling shares amounting to ₹58.6 crore. Dhaval Harshadbhai Mehta (jointly with Avanee Mehta) and Gitaben Harshadbhai Mehta (jointly with Harshadbhai Amritlal Mehta) are selling shares worth ₹16.4 crore and ₹24.6 crore, respectively. Jignesh Suryakant Patel is selling the highest chunk - 13.88 lakh shares worth ₹104.6 crore. His cost of acquisition was ₹13.20 per share, ensuring strong returns too.

IPO Valuation

At the upper band of ₹754, Atlanta’s IPO values the firm at ₹5,797 crore. Based on FY25 earnings, P/E comes to 48.9 times. This is expensive compared to Voltamp (22x) and Danish Power (26x), but cheaper than TRIL (70x).

The high valuation is supported by strong ROE and ROCE, but investors should note its relatively lower EBITDA margin. Its EV/EBITDA at 27.7x also seems on a higher side, showing that the market is already pricing in strong future growth.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

The People Behind Atlanta Electricals

Atlanta Electricals is led by a promoter group with deep experience in transformers and allied businesses. The key people include:

• Niral Krupeshbhai Patel (Chairman & MD): With over 22 years of industry experience and an MBA from Hult International Business School, Niral handles customer relationships and overall business strategy.
• Amish Krupeshbhai Patel (Whole-time Director): Brings 17 years of business experience across real estate and investments, focusing on land acquisitions and collaborations.
• Tanmay Surendrabhai Patel (Whole-time Director): Has more than 22 years of experience, responsible for procurement and supply chain.
• Akshaykumar Mathur (CEO): Brings 21 years of leadership in transformers, previously working at Voltamp Transformers. An MBA by qualification, he leads day-to-day operations.

Assisted by an experienced finance and compliance team, the leadership has a mix of family promoters and professional managers. However, related-party business transactions and dual promoter interests (Atlanta UHV Transformers LLP) will remain areas investors need to monitor.

Industry Outlook

The transformer industry is entering a growth cycle, backed by India’s rising electricity consumption, government investments in T&D, and large renewable energy targets of 500 GW by 2030. The Indian transformer market, sized at $1.3 billion in 2024, is expected to double to $2.6 billion by 2030.

Three growth drivers are clear - growing energy demand, strong government spending, and the renewable transition. On the flipside, raw material price volatility, working capital intensity, and competition keep margins under pressure.

Analyst View

Atlanta Electricals comes with strong fundamentals, a high order book, near-full capacity utilization, and high ROE and ROCE that make it look ahead of its peers. But heavy dependence on Gujarat facilities, few customers driving most revenue, reliance on tenders, and lower margins than competitors are real risks.

The IPO is priced at a premium compared to industry leaders, which means investors are already paying for expected future growth. For those who believe in the long-term power and renewable energy growth story, the IPO offers a chance to ride a sectoral boom with a company that has scaled fast. For conservative investors, the high valuation and margin pressure may warrant caution.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Atlanta Electricals' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.