Atlanta Electricals IPO Sees Strong Investor Demand On Final Day Of Subscription

The initial public offering (IPO) of Atlanta Electricals has received an overwhelming investor response, with subscriptions exceeding eight times its offer size on the final day of bidding.

The IPO garnered bids for more than five crore shares, against an offer size of around 65 lakh shares, according to NSE data. Retail investors subscribed nearly six times their allocated portion, Non-Institutional Investors (NII) booked their portion 21 times, while Qualified Institutional Buyers (QIB) subscribed over three times their reserved quota.

IPO Details

Gujarat-based transformer manufacturer Atlanta Electricals has launched an IPO to raise ₹400 crore through a fresh issue and ₹287.3 crore via an offer-for-sale by promoters, with a price band of ₹718-₹754 per share.

Investors can bid for a minimum of 19 shares (₹14,326 at the upper band) per lot. Allotments are expected by September 25, with shares listed on September 29.

The IPO also saw strong anchor investor participation, raising ₹204.7 crore from 11 investors, including Kotak AMC, Axis Mutual Fund, HSBC MF, Nippon India, HDFC MF, and ICICI Prudential Life Insurance.

The IPO funds are intended primarily for capital expenditure of ₹210 crore, repayment of debt worth ₹79.1 crore, and general corporate purposes worth ₹110.9 crore.

GMP Details

Ahead of listing, the company’s unlisted shares were trading at a grey market premium (GMP) of 16.5% - 18% above the IPO price.

Analyst View: Apply

SEBI-registered analyst Aditya Hujband has recommended applying for the IPO.

Atlanta Electricals’ strengths lie in its more than 30 years of industry experience, a wide-ranging product portfolio serving both conventional and renewable energy sectors, a robust and diverse client base, an international footprint, a healthy order book, and a conservative debt strategy that supports financial stability, he said.

However, the company faces certain risks, including reliance on leased manufacturing facilities, potential cash flow pressures from customer defaults, execution challenges at the Vadod plant, obligations linked to promoter guarantee clauses, regulatory or legal uncertainties, and the cyclical nature of demand in the power sector, Hujband added.

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