Atlanta Electricals Limited, a leading transformer manufacturer based in Gujarat, has launched its ₹687.34 crore initial public offering (IPO), and early indicators suggest strong investor interest. With a grey market premium (GMP) hovering between ₹140 and ₹145 per share, the IPO is generating buzz across retail and institutional circles. This blog explores the IPO details, GMP trends, financials, and whether investors should consider subscribing.

IPO Overview: Key Details

Atlanta Electricals’ IPO was launched on September 22 and will continue till September 24. Price band is ₹718 to ₹754 per equity share of face value ₹2. Bidding can be done for a minimum lot of 19 shares, which will translate into an entry investment of ₹14,326 at the upper price band.

IPO comprises new issue of ₹400 crore and an offer-for-sale (OFS) of ₹287.34 crore by present investors. The proceeds will be used for repayment of debt, working capital needs, and general corporate objectives. The company’s shares will be listed on BSE and NSE on September 29 following the issue.

Grey Market Premium (GMP): What It Indicates

As on September 22, the GMP for Atlanta Electricals IPO is ₹140 to ₹145. This indicates an anticipated listing price of approximately ₹894 to ₹899, which is roughly 18 to 19 percent higher than the top end of the issue price.

GMP is an unofficial measure of investor demand and sentiment in the secondary market prior to listing. Though not regulated, it tends to indicate how well the stock may perform on listing. Strong GMP generally indicates strong interest and possible listing gains.

Anchor Investor Participation

Atlanta Electricals collected ₹204.7 crore from 11 anchor investors prior to the IPO. Anchor book comprised marquee names like Kotak AMC, Axis Mutual Fund, Pinebridge Global Funds, HSBC MF, Nippon India, Allianz Global Investors Fund, Ashoka Whiteoak, HDFC Mutual Fund, ICICI Prudential Life Insurance, and Valuequest India.

This institutional support lends credibility and confidence to the issue, tending to guide retail as well as non-institutional investor sentiment.

Business Profile and Strengths

Atlanta Electricals was established in 1988 and is engaged in producing a diversified set of transformers comprising:

• Power transformers 
• Inverter-duty transformers 
• Furnace transformers 
• Generator transformers 
• Special-duty transformers

The five production units of the company, four of which are currently operational, are located in Anand, Bengaluru, Vadod, and Ankhi. It is among the extremely few Indian firms that produce transformers of up to 500 MVA and 765 kV capacity, being one of the leaders in India’s power infrastructure sector.

As of March 31, 2025, the customer base at Atlanta Electricals was 208 from 137 in FY23. It has supplied over 4,400 transformers totaling 94,000 MVA across 19 states and three union territories.

Financial Performance

Atlanta Electricals has reported robust financial performance during the last two years:

• FY25 Revenue: ₹1,250.49 crore
• FY25 Net Profit: ₹118.65 crore
• FY24 Revenue: ₹872.05 crore
• FY24 Net Profit: ₹63.36 crore

This is a 43 percent year-on-year revenue growth and nearly a 87 percent net profit growth. The company’s EBITDA margin was 16 percent, and return on equity at 33.9 percent was healthy.

Its order book as of March 2025 was ₹1,642.9 crore, giving good visibility for future revenue. Public sector undertakings constitute more than 80 percent of this order book, including approvals from Power Grid Corporation of India and the Ministry of Railways.

Industry Outlook

The Indian transformer industry is set to grow very strongly, led by:

• Growth in renewable energy projects
• EV charging infrastructure development
• Transmission and distribution network upgrades
• Electrification of high-speed railways

India is expected to commission 162,646 km of new transmission circuit kilometers and 1,159,805 MVA of substation capacity by FY2032, according to estimates. The transformer market is likely to expand at a CAGR of 6 to 7 percent and touch $3.5 billion by FY2030.

Atlanta Electricals, with its PSU approvals and diversified product offerings, stands to benefit strongly from these tailwinds.

Valuation and Investor Considerations

At the higher price band of ₹754, the IPO places a value on the company at a market capitalization of ₹5,797.49 crore. The P/E ratio is 48.8x on the basis of FY25 earnings, and the EV/EBITDA ratio is 30.1x.

Though some analysts believe the IPO is priced fully, the favorable GMP and anchor subscriber interest indicate the possibility of listing gains. Broking companies such as Chola Securities and Anand Rathi have provided “Subscribe” ratings, attributing the same to the company’s strong order book, industry growth, and operating strengths.

Subscription Status

During Day 1 of bidding, the IPO witnessed decent demand:

• Retail portion: 1.01x subscribed 
• Non-Institutional Investors (NIIs): 1.03x subscribed
• Qualified Institutional Buyers (QIBs): Subscribed to the full extent

This initial traction reflects strong interest from all categories of investors and supports the positive sentiment embedded in the grey market.

Risks to Consider

Although the outlook is good, investors have to be cautious of risks that may occur:

• High valuation compared to peers 
• Dependence on public sector orders 
• Execution risks in large-scale projects 
• Market volatility impacting listing performance

GMP is not an official figure and can fluctuate rapidly. Investors should never use it as the determining factor and have to look at the fundamentals and the long-term scenario.

Final Verdict

Atlanta Electricals’ IPO is evoking a lot of interest, with the grey market premium of ₹140 to ₹145 showing good listing prospects. With strong financials, a diversified product basket, and favorable industry trends supporting it, the company presents a compelling case for investors seeking India power infrastructure growth exposure.

The IPO is well-received in institutional and retail segments alike, and the trend of GMP adds to the optimism. For medium to long-term horizon investors, Atlanta Electricals presents a mix of stability, growth, and sectoral appropriateness.

As ever, due diligence and portfolio suitability should inform investment choice. But if the GMP is anything to go by, Atlanta Electricals may prove to be one of the top IPOs of 2025.