Atlanta Electricals to launch Rs 687-crore IPO on September 22, with price band set at Rs 718-754 per share

Atlanta Electricals IPO News

Atlanta Electricals, manufacturer of power, auto and inverter duty transformers, on September 17 said it will launch its initial public offering (IPO) on September 22 to raise Rs 687 crore.

The company has fixed a price band of Rs 718 to Rs 754 per share, valuing the company at roughly Rs 5,800 crore at the upper end.

Atlanta Electricals' maiden public offering is scheduled to conclude on September 24, and the one-day bidding for anchor investors will open on September 19.

The Gujarat-based company's IPO is a combination of a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) of 38.1 lakh equity shares valued Rs 287 crore at the upper end of the price band, by a promoter and other selling shareholders.

The company proposes to utilize the proceeds from the issue for payment of debt, supporting working capital requirements of the company and for general corporate purposes.

According to a Crisil report, India's transformer market is driven by the relentless growth in electricity demand, with per capita consumption surging by over 50 per cent in the last decade.

Click Here To Read All IPO News

Additionally, the government's investment in the renewable energy sector and expanding the power transmission network, which will create opportunities for the transformer market's growth.

In terms of issue allocation, 50 percent of the IPO is reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors. The minimum lot size for application is 19 shares and in multiples thereafter.

Motilal Oswal Investment Advisors and Axis Capital are the book-running lead managers to the issue. Atlanta Electricals is expected to make its stock market debut on September 29.