Atlanta Electricals IPO subscribed 70x on Day 3, QIB portion booked nearly 195x: Should you apply?

Atlanta Electricals IPO Day 3

The initial public offering of Atlanta Electricals has been subscribed more than 70 times its offer size of its third and final day of public bidding (September 24) amid strong investor interest.

The maiden public issue of the company received bids for over 46 crore shares, as against the offer size of more than 65 lakh shares, according to data on NSE. Retail investors have booked their reserved portion 10.4 times, while Non Institutional Investors (NII) subscribed the portion kept for them 54 times. Qualified Institutional Buyers (QIB) booked their reserved portion nearly 195 times.

Atlanta Electricals IPO GMP:

Ahead of listing, the unlisted shares of the company were trading with 14.6 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is however lower than the 19 percent GMP quoted by the site earlier last week.

According to IPO Watch, the unlisted shares of the company were trading with more than 18 percent GMP over the IPO price.

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. The IPO will remain open for public bidding till tomorrow, September 24.

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 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.

Atlanta Electricals has a strong business with a healthy order book, said Shravan Shetty, Managing Director, Primus Partners. "Expect to list with a premium of 15-20% only, since the pricing basis P/E seems to be at the higher end of the valuation range for the transformer industry," he added.

"With five strategically located manufacturing facilities, NABL-accredited testing infrastructure, and a diversified product portfolio catering to utilities, renewable projects, and industrial applications, the Company has established a strong presence in the market. A healthy order book of Rs 16,429.58 million as of March 31, 2025, long-standing relationships with marquee customers such as GETCO, Adani Green, and Tata Power, and its focus on in-house R&D and customized solutions provide both revenue visibility and competitive strength," said Master Capital Services. Investors may consider the IPO as a potential long-term investment opportunity, it added.

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