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Atlanta Electricals Limited IPO Review: Should You Invest?
The Indian power sector is witnessing strong growth, driven by rising electricity demand, rural electrification, and infrastructure expansion. Against this backdrop, Atlanta Electricals Limited, a leading manufacturer of power transformers, is launching its Initial Public Offering (IPO). Let’s break down the IPO details, company background, financials, strengths, risks, and valuation to see whether it deserves a spot in your investment portfolio.
Atlanta Electricals was originally incorporated as Atlanta Electricals Private Limited on December 15, 1988, and later converted into a public limited company on April 10, 1996. Headquartered in Anand, Gujarat, the company specializes in designing and manufacturing a wide range of transformers including:
Power Transformers (5 MVA / 11 kV to 200 MVA / 220 kV)
Auto Transformers
Inverter Duty Transformers
Furnace Transformers
Generator Transformers
Special Duty Transformers
Its key customers include state electricity boards, government utilities, private substation operators, and renewable energy projects.
Atlanta Electricals IPO Details.
IPO Type: Fresh Issue + Offer for Sale (OFS)
Fresh Issue: ₹400 crore
OFS: Up to 38.95 lakh equity shares by existing shareholders
Face Value: ₹2 per equity share
Price Band: ₹718 – ₹754 per share
Lot Size: 19 shares
Minimum Investment (Retail): ₹13,642 – ₹14,326
IPO Open Date: September 22, 2025
IPO Close Date: September 24, 2025
Allotment Date: September 25, 2025
Demat Credit/Refunds: September 26, 2025
Listing Date: September 29, 2025
Atlanta Electricals IPO Details
1- ₹79.12 crore – Repayment of loans
2- ₹210 crore – Working capital requirements
3- Balance – General corporate purposes
Industry Overview
India’s transformer market is expanding rapidly due to:
50%+ jump in per capita electricity consumption in the last decade
Government push for rural electrification and 24×7 power supply
Rising renewable energy demand (solar, wind, EV charging)
Transformers play a critical role in efficient power transmission and distribution, making companies like Atlanta Electricals strategically important.
Strengths of Atlanta Electricals.
Diverse Product Portfolio – Six product categories including specialized transformers for solar, wind, and high-power testing labs.
Strong Order Book – ₹1,642.96 crore in FY25 vs. ₹1,271.38 crore in FY24, showing healthy growth.
Capacity Expansion & Backward Integration – Investments in critical components like transformer tanks, frames, and radiators to optimize costs and improve margins.
Expanding Customer Base – Targeting government, private utilities, and international markets (Nepal, Africa).
Superior Return Ratios – ROE at 33.91% and ROCE at 39.43% in FY25, significantly ahead of peers.
Key Risks and Weaknesses.
Single Manufacturing Location – 98%+ of revenue generated from Gujarat facility, exposing it to regional risks.
High Dependence on Government Utilities – 65%+ revenue from state electricity boards. Any policy change could impact business.
Conflict of Interest – Promoter entity Atlanta UAV Transformers LLP operates in a similar business.
Customer Concentration – Top 10 customers contribute over 70% of revenue.
Supplier Dependence – Over 60% of raw materials sourced from top 10 suppliers.
Quality Compliance Risks – Strict inspection standards, risk of order cancellations and penalties.
Financial Performance
Revenue from Operations:
FY23: ₹867.55 crore
FY24: ₹1,244.18 crore (+43.1% YoY)
Profitability:
EBITDA Margin: 16.07%
PAT Margin: 9.54%
Other Income: Grew 40.25% in FY25 due to reversal of expected credit loss and higher interest income.
Finance Costs: Rose 14.01% to ₹34.24 crore in FY25 due to higher bank guarantee commissions.
Order Book: ₹1,642.96 crore in FY25 (₹1,348.52 crore from government clients, ₹294.44 crore from private sector).
Cash Flow: Positive operating cash flow for the last three years, indicating strong sustainability.
Peer Comparison
| Company | FY25 Revenue | EBITDA Margin | PAT Margin | ROE | ROCE |
|---|---|---|---|---|---|
| Atlanta Electricals | ₹1,244.18 Cr | 16.07% | 9.54% | 33.91% | 39.43% |
| Voltamp Transformers | ₹1,934.28 Cr | 23.31% | 16.82% | 20.50% | 27.57% |
| Transformers & Rectifiers | ₹293.8 Cr | 17.95% | 10.72% | 17.29% | 21.86% |
| Danish Power | ₹426.71 Cr | 15%+ | 10%+ | 18% | 25.97% |
👉 Despite being smaller in scale, Atlanta shows superior return ratios (ROE & ROCE) compared to peers.
Grey Market Premium (GMP)
As per market observers, Atlanta Electricals IPO GMP is showing early signs of positive interest. However, investors must remember that GMP is speculative and does not guarantee listing gains. Market sentiment, subscription levels, and fundamentals drive actual listing price.
Conclusion
The Atlanta Electricals IPO brings a mid-tier transformer company with:
Strong growth momentum (19.32% revenue CAGR, 16.46% PAT CAGR FY23–FY25)
Robust order book of ₹1,642.96 crore
Industry-leading return ratios (ROE 33.91%, ROCE 39.43%)
However, risks such as high government dependency, customer concentration, and single facility operations should be carefully evaluated.
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