Atlanta Electricals Makes Strong Debut with 7.28% Premium, Opens at ₹858.10 Following Exceptional Subscription

Atlanta Electricals Limited, the power and transformer manufacturer, made a solid debut on BSE and NSE on September 29, 2025. After closing its IPO bidding between September 22-24, 2025, the company commenced trading with a 13.80% premium, opening at ₹858.10 and currently trading at ₹808.90 with gains of 7.28%.

Atlanta Electricals Listing Details

Atlanta Electricals Limited launched its IPO at ₹754 per share with a minimum investment of 19 shares costing ₹14,326. The IPO received an exceptional response, with a subscription of 72.16 times. Retail investors subscribed at a strong 10.76 times, NII at an outstanding 55.82 times, and QIB at an exceptional 194.77 times.

First-Day Trading Performance Outlook

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• Listing Price: Atlanta Electricals' share price opened at ₹858.10, representing a premium of 13.80% from the issue price of ₹754, currently trading at ₹808.90, delivering solid gains of 7.28% for investors, reflecting strong market confidence in the power infrastructure sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range of power transformers, inverter-duty transformers, furnace transformers, generator transformers, and special-duty transformers serving diverse customer segments across 19 states and three union territories.
• Strong Order Book: Robust order book worth ₹1,642.96 crore as of March 2025, providing strong revenue visibility and supporting business growth in the expanding power infrastructure sector.
• Capacity Expansion: Five manufacturing facilities, including the recently commissioned Vadod Unit, which commenced commercial production in July 2025, have enhanced capacity to support growing demand from state grids, renewable energy projects, and private players.

Challenges

• High Valuation Concerns: Extremely elevated price-to-book value of 23.62x and P/E of 46.33x reflecting aggressive valuation multiples requiring sustained exceptional growth execution to justify premium pricing.
• Working Capital Intensity: Transformer manufacturing business requires substantial working capital for project execution, inventory management, and extended payment cycles, potentially straining cash flows.
• Competitive Market Dynamics: The Power equipment sector is facing competition from established players and new entrants requiring continuous innovation, quality maintenance, and competitive pricing strategies.

Utilisation of IPO Proceeds

• Debt Reduction: ₹79.12 crore for repayment and prepayment of outstanding borrowings, improving financial leverage and reducing interest burden from increased debt levels.
• Working Capital: ₹210.00 crore for working capital requirements supporting project execution, inventory management, and business scaling in transformer manufacturing operations.
• General Corporate Purposes: Supporting business operations, strategic initiatives, and expansion activities for long-term growth in the power equipment market.

Financial Performance of Atlanta Electricals

• Revenue: ₹1,250.49 crore for FY25, showing robust growth of 43% from ₹872.05 crore in FY24, reflecting strong demand for transformers and successful business execution.
• Net Profit: ₹118.65 crore in FY25, representing exceptional growth of 87% from ₹63.36 crore in FY24, indicating substantial operational leverage and margin expansion benefits.
• Financial Metrics: Outstanding ROE of 33.91%, impressive ROCE of 39.43%, moderate debt-to-equity ratio of 0.40, healthy PAT margin of 9.54%, solid EBITDA margin of 16.07%, and estimated market capitalisation of ₹6,230.16 crore.