IPO Size: Rs. 687 cr

• Fresh Issue of Rs. 400 cr for (i) Rs. 210 cr for working capital (ii) Rs. 79 cr debt repayment of Rs.192 cr proforma gross debt (as of 31.3.25)
• Offer for sale (OFS) of Rs. 287 cr: by the promoter (94% to drop to 87%) and other individual shareholders (6% combined holding to drop to 1% post IPO)

Price band: Rs. 718-754 per share

M cap: Rs. 5,797 cr, implying 12% dilution

IPO Date: Mon 22^nd Sep to Wed 24^th Sep 2025, Listing Mon 29^th Sep 2025

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

Gujarat based Transformer Maker

Atlanta Electricals is a 30 year old manufacturer of power, auto and inverter duty transformers, of up to 200 Mega Volt-Amp (MVA) capacity and with 220 kilovolts (kV) voltage, having 3 plants in Anand, Gujarat and Bengaluru, Karnataka. It enjoys 12% market share in 5–200 MVA/220kV segment. 

In July 2025, Atlanta commercialised a 4^th greenfield plant at Vadod, Gujarat, increasing installed capacity by 180% from 16,740 MVA to 47,280 MVA. Capital work in progress of Rs. 113 cr, as of 31.3.25, now seems to have been capitalized

Inorganic Growth

In May 2025, it acquired 90% stake in BTW-Atlanta Transformers India Private Limited, for Rs. 182 cr (already held 10% stake), adding 15,780 MVA capacity and capability to manufacture high-capacity transformers of up to 500 MVA rated capacity of 765 kV, at a plant in Vadodara, Gujarat. Since the acquired business had zero revenue for FY25, with Rs. 14 cr net loss, FY26 will be a turnaround year for the plant.

Huge Capacity Increase

From March 2025 to now, Atlanta’s total manufacturing capacity spread across 5 plants, has risen by 3.8x to 63,060 MVA, from 16,740 MVA as of 31.3.25. This keeps FY26E outlook very encouraging, especially when transformer capacity is fully booked, with demand far exceeding capacity and supported by outstanding order book of Rs. 1,643 cr,  as of 31.3.25, representing 1.3x of its annual revenue.

Double Digit Net Margin

On 98% utilization of 16,740 MVA capacity, FY25 revenue stood at Rs. 1,244 cr with EBITDA of 199 cr (16% EBITDA margin). PAT was at Rs. 119 cr, translating to 10% net margin and an EPS of Rs. 16.6. On Rs. 350 cr net worth, RoE was at 34%.

Since government and PSUs account for majority of the orders, debtor cycle of ~3.5 months is not concerning.

Huge Debt Surge

As on July 31, 2025, borrowings (including non-fund based) has increased to Rs. 976 cr, a steep rise from fund-based proforma borrowings of Rs. 192 cr as of 31.3.25. While some debt can be assumed to fund acquisition, presuming balance to be for working capital, is also quite large.

Company’s credit rating stands at CRISIL BBB+/Positive, with outlook upgraded from stable in April 2025 (no rating change), keeping interest cost a monitorable post listing.

Attractive Pricing

Company guides 33,602 MVA production for FY26E and 43,160 MVA for FY27E, implying 105% YoY and 28% YoY volume growth for FY26E and FY27E respectively. On an estimated EPS of about Rs. 30 for FY26E, m cap of close to Rs. 5,800 cr implies a PE multiple of 25x, for current year, which is seen attractive for high growth, healthy margin and sector tailwinds.

Peer Voltamp, with lower book-to-bill, is trading at 23x and much smaller peer Danish Power is at 25x PE, while leader TARIL with 10% net margin and superior growth visibility is at 38x.