IPO Watch: Atlanta Electricals files draft papers with SEBI for IPO

IPO Watch: Atlanta Electricals Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Atlanta Electrical is among the few manufacturers in India capable of producing transformers with a capacity of up to 200 Mega Volt-Amp (MVA) and voltage levels of 220 kilovolts (kV), as stated in a CRISIL report.

With over 30 years of experience in the transformer manufacturing sector and a presence across the country, the firm offer a diverse selection of transformers ranging from 5 MVA/11 kV to 200 MVA/220 kV. In support of India’s renewable energy ambitions, the company made significant strides in the green energy transition in 2021 by obtaining a substantial order for the delivery of eight 80 MVA, 220/33 kV power transformers for the Ultra Mega Solar Park in Andhra Pradesh.

The promoters of the company include Krupeshbhai Narharibhai Patel, Niral Krupeshbhai Patel, Amish Krupeshbhai Patel, Tanmay Surendrabhai Patel, the Narharibhai S. Patel Family Trust, Patel Family Trustee Private Limited, Niral Patel Family Trust, Amish Patel Family Trust, Tanmay Patel Family Trust, and ATLANTA UHV TRANSFORMERS LLP.

IPO details

The public offering consists of a new issuance of equity shares with a face value of ₹2 each, totaling up to ₹400 crore, along with an offer for the sale of up to 3,810,895 equity shares. This offer includes a reservation of equity shares for eligible employees to subscribe.

The company plans to use the net proceeds for repayment or prepayment, in whole or in part, of certain existing borrowings taken by the company, to fund its working capital needs, and for general corporate purposes.

In consultation with the Book Running Lead Managers (BRLMs), the company may also consider issuing certain specified securities through a preferential placement or any other method permissible under applicable law, amounting to up to Rs. 80 crore before filing the Red Herring Prospectus (the Pre-IPO Placement). Motilal Oswal Investment Advisors Ltd and Axis Capital Ltd are serving as the Book Running Lead Managers for this issue.

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