Atlanta Electricals IPO subscribed 97% on Day 1: Should you apply?

Atlanta Electricals IPO Day 1

The initial public offering of Atlanta Electricals opened for public bidding today, September 22. The Rs 687-crore issue has been subscribed 97 percent on Day 1 so far.

The IPO received bids for more than 63.5 lakh shares, as against the offer size of 65.38 lakh shares, according to data on NSE. Retail investors have booked 95 percent of their reserved portion, while Non Institutional Investors (NII) have subscribed 100 percent of their reserved portion. Qualified Institutional Buyers (QIB) have fully booked their reserved quota.

Atlanta Electricals IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with nearly 11.94 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.

Key things to know about Atlanta Electricals IPO:

Gujarat-based power transformers manufacturer Atlanta Electricals moved to the capital markets to raise funds through a fresh issue of shares worth Rs 400 crore and an offer for sale of shares worth Rs 287.3 crore by existing promoters at a price band of Rs 718-754 per share.

Investors can bid for a minimum of 19 shares, requiring an investment of Rs 14,326 at the upper price band, and in multiples thereafter. The allotments will likely be finalized by September 25, and the shares are scheduled to be listed on stock exchanges on September 29.

Atlanta Electricals IPO Anchor Book:

Before the IPO opened for public bidding, the company announced on September 19 that it has raised Rs 204.7 crore from 11 anchor investors including five asset management companies. 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 were among the 11 investors in the anchor book.

Should you subscribe?

Atlanta Electricals Limited (AEL) is one of India’s leading manufacturers of power, auto, and inverter duty transformers by production volume as of fiscal 2025, said HDFC Securities. It added that the company is well-positioned to capture the industry tailwinds.

"The Indian transformer components market plays a significant global role, with India ranking as the sixth largest exporter in 2022, shipping components valued at USD 468 million to key markets such as the United States, Kuwait, and Oman, while also importing USD 538 million worth primarily from China, Germany, and Vietnam. This dual dynamic underscores India's position as both a major producer and consumer of transformer components," it added.

Follow all IPO news here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.