IPO Details
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Schedule of Atlanta Electricals Ltd IPO
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About Atlanta Electricals Ltd IPO
The Atlanta Electricals Ltd IPO consists of a fresh issue and an offer for sale. The fresh issue aggregates up to ₹400 crores with shares of face value of ₹2 each. The offer for sale is up to 3,810,895 equity shares.
Objectives of Atlanta Electricals Ltd IPO
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company
- Funding working capital requirements
- General corporate purposes
Atlanta Electricals Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹400 crore |
Offer for Sale | Up to 3,810,895 equity shares |
EPS in ₹ for FY 24 | 8.87 |
Atlanta Electricals Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Bidders | Not less than 15% of the net offer |
Retail Individual Bidders | Not less than 35% of the net offer |
Industry Outlook
India's transformer market is driven by the relentless growth in electricity demand, with per capita consumption surging by over 50% in the last decade. The transformer segment has registered a growth of 10.4% in between 2019-23 and is expected to grow at a CAGR of ~6-7% from 2024-2029. As electricity demand continues to rise, the EHV and UHV power transformer market is poised for significant growth.
These transformers play a crucial role in transmitting electricity over long distances with minimal losses, making them essential for efficient power distribution networks.
Company Information
Atlanta Electricals Ltd is one of the leading manufacturers of power, auto and inverter duty transformers in India, in terms of production volume as of Fiscal 2024. It’s also one of the few companies in India, manufacturing transformers up to and including 200 Mega Volt-Amp (MVA) capacity and with 220 kilovolts (kV) voltage.
As of September 30, 2024, the company has a customer base in 19 states and three union territories, across India, with a supply of 4,000 transformers, aggregating to 78,000 MVA to various state and national electricity grids, private sector players and prominent renewable energy generation projects.
Atlanta Electricals Ltd Strengths
One of the leading manufacturers of power, auto and inverter duty transformers in India, well-positioned to capture the industry tailwinds
Atlanta Electricals Ltd is one of the leading manufacturers of power, auto and inverter duty transformers in India, in terms of production volume as of Fiscal 2024. With over 30 years of experience in the transformer manufacturing industry, the company has established a legacy of quality and technology.
Over the years, the company has expanded its operations significantly, allowing it to establish a robust presence across 19 states and three union territories in India. This extensive footprint demonstrates its ability to meet the diverse needs of customers nationwide.
Broad and diversified product portfolio with focussed product development tailored to meet the customer requirements
The company offers a broad and diversified product portfolio, which is designed to meet the diverse requirements of its customers. As of September 30, 2024, its portfolio comprises 6 products, such as power transformers, inverter duty transformers, furnace transformers, generator transformers, and special duty transformers.
Strong order book coupled with well diversified customer base
The company is one of the leading manufacturers of power, auto and inverter duty transformers in terms of production volume as of Fiscal 2024. As of September 30, 2024, the company has cultivated relationships with 208 customers of which 21 are public sector undertakings and 187 are private sector players.
Its customer base has expanded significantly, growing from 77 customers in Fiscal 2022 to 184 customers in Fiscal 2024, reflecting a compound annual growth rate (CAGR) of 33.69% and reaching 208 customers as of September 30, 2024.
Risks of Atlanta Electricals Ltd
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Geographical concentration risk in revenue generation: A significant portion of its revenue is generated from manufacturing of transformers at its facilities situated in Gujarat. As of the six-month period ended September 30, 2024 and Fiscal 2024, Fiscal 2023 and Fiscal 2022, the company derived 99%, 97%, 90% and 92%, respectively, of its revenue from manufacturing facilities situated in Gujarat.
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Dependence on utility companies and government policies: The company derives a significant portion of its revenue from the supply of transformers to utilities including state electricity companies which constituted 65.21%, 65.46%, 80.47% and 83.10% of its revenue from operations during the six-month period ended September 30, 2024 and during Fiscal 2024, Fiscal 2023 and Fiscal 2022. Additionally, its business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to government policies.
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Dependence on government contracts and tendering process: A significant portion of its revenue is derived from government-controlled entities, who follow the tendering process for determination of suppliers. The company may be adversely affected if it doesn’t succeed in all or a majority of the contracts that it tenders for.
All Financial Information about Atlanta Electricals
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV per Share (in ₹) |
|---|---|---|---|---|
Atlanta Electricals Ltd | 867.553 | 8.87 | 27.80 | 31.92 |
Voltamp Transformers Ltd | 1616.223 | 303.80 | 22.71 | 1337.94 |
Transformers and Rectifiers India Ltd | 1294.676 | 3.24 | 8.48 | 38.89 |
Danish Power Ltd | 332.476 | 26.04 | 46.36 | 510.36 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- Registrar: MUFG Intime India Pvt Ltd, formerly known as Link Intime India Pvt Ltd
- Book Running Lead Managers: Motilal Oswal Investment Advisors Ltd and Axis Capital Ltd
Business Model
With a pan India presence and operations spanning over 30 years in the transformer manufacturing industry, Atlanta Electricals Ltd supply a wide range of transformers starting from 5 MVA/11 kV up to 200 MVA/220 kV.
As of September 30, 2024, the company had a customer base in 19 states and three union territories, across India, with a supply of 4,000 transformers, aggregating to 78,000 MVA to various state and national electricity grids, private sector players and prominent renewable energy generation projects.
Company Growth Trajectory
The company has established a consistent track record of financial performance, reflecting its operational efficiency and market leadership. For the six-month period ended September 30, 2024, and the financial years ending March 31, 2024, 2023, and 2022, its revenue from operations stood at ₹570.141 crores, ₹867.553 crores, ₹873.883 crores, and ₹625.662 crores, respectively.
Its financial growth is further evidenced by continuous improvements in its balance sheet over the last three fiscal years and the six-month period ended September 30, 2024.
Atlanta Electricals Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 872.049 | 876.656 | 627.690 |
Profit / (loss) Before Tax (in ₹ crore) | 87.266 | 110.447 | 62.957 |
Profit / (loss) After Tax (in ₹ crore) | 63.362 | 87.541 | 55.254 |
EPS in ₹ | 8.87 | 12.22 | 7.73 |
Atlanta Electricals Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit / (loss) Before Tax (in ₹ crore) | 87.266 | 110.447 | 62.957 |
Net Cash Generated by Operating Activities (in ₹ crore) | 88.311 | 51.975 | 0.745 |
Net Cash (used in)/ Generated by Investing Activities (in ₹ crore) | (35.653) | (17.816) | 2.011 |
Net Cash Used in Financing Activities (in ₹ crore) | (55.569) | (31.273) | (2.784) |
Cash and Cash Equivalents at the End of the Year (in ₹ crore) | 0.218 | 3.129 | 0.241 |
How to Check Allotment Status of Atlanta Electricals Ltd IPO?
Visit the Registrar’s Website
Visit the official website of MUFG Intime India Private Ltd and choose ‘Public Issues’ from ‘Investor Services’ dropdown. Choose the company name from the ‘Select Company’ dropdown. Enter either your PAN, application number, DP client ID, etc and click on ‘Submit’ to check status.
Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Atlanta Electricals Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search’ to know allotment status
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Atlanta Electricals Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Atlanta Electricals Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Atlanta Electricals Ltd IPO FAQs
What is the Atlanta Electricals Ltd IPO?
The IPO of Atlanta Electricals Ltd comprises a fresh issue and an offer for sale. The size of the fresh issue aggregates up to ₹400 crore while the offer for sale is up to 3,810,895 equity shares.
When will the IPO of Atlanta Electricals Ltd go live?
The bidding dates of the IPO are yet to be announced.
Who is the Chairman and MD of Atlanta Electricals Ltd?
Niral Krupeshbhai Patel is the chairman and MD of Atlanta Electricals Ltd.
From where can I read more about the IPO of Atlanta Electricals Ltd?
You can read more about the IPO of Atlanta Electricals Ltd from the company’s draft red herring prospectus here.
