Atlanta Electricals
- Atlanta Electricals is coming out with a 100% book building; initial public offering (IPO) of 93,89,447 shares of Rs 2 each in a price band Rs 718-754 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 22, 2025 and will close on September 24, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 359.00 times of its face value on the lower side and 377.00 times on the higher side.
- Book running lead managers to the issue are Motilal Oswal Investment Advisors and Axis Capital.
- Compliance Officer for the issue is Tejalben Saunakkumar Panchal.
Profile of the company
Atlanta Electricals is one of the leading manufacturers of power, auto and inverter duty transformers in India, terms of production volume as of Fiscal 2025. The company was among the few companies in India, manufacturing transformers up to and including 200 Mega Volt-Amp (MVA) capacity and with 220 kilovolts (kV) voltage prior to the acquisition of BTW-Atlanta Transformers India Private Limited and the commissioning of its Vadod Unit. Following these developments, the company has enhanced its manufacturing capabilities and is now able to produce transformers with a rated capacity of up to 500 MVA and with 765 kV. Over a short period, it has witnessed significant growth in terms of revenue from Rs 8,738.83 million to Rs 12,441.80 million from Fiscal 2023 to Fiscal 2025 at a CAGR of 19.32%.
The company has five manufacturing facilities and operates four fully operational manufacturing facilities, two located at Anand, Gujarat, one at Bengaluru, Karnataka and the Vadod Unit which has commenced commercial production in July, 2025 is located in Vadod, Gujarat. Its fully operational four facilities (including the Vadod Unit which has commenced production in the month of July, 2025) aggregate to 10,94,282.19sq. ft. land area with a combined capacity of 47,280 MVA. Further, with the inclusion of BTW-Atlanta Transformers Private Limited as its wholly owned subsidiary, it has added a facility at Ankhi to its existing facilities, with a total land area aggregating to 904,436.70 sq. ft. and an installed capacity of 15,780 MVA.
All five of its facilities will have a combined installed capacity of 63,060 MVA. Its Gujarat Unit - I and Gujarat Unit - II facilities comprise National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited testing laboratories with four transformer testing labs capable of conducting routine tests for transformers up to 200 MVA/ 245kV and one transformer oil testing lab. The company’s facilities adhere to the industry standards, including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, positioning it as a reliable manufacturer of a wide range of transformers, such as power distribution and special duty transformers. These NABL-accredited laboratories have enabled it to conduct all major routine tests internally, thereby reducing its reliance on external third-party laboratories.
Proceed is being used for:
- Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by the company
- Funding working capital requirements of the company
- General corporate purposes
Industry Overview
The Indian distribution transformer market size is valued at $3.42 billion registering a growth of 14.2% (CAGR 2019-2024). Increasing demand for power, rapid urbanisation and industrialisation, government’s initiative to achieve 100% electrification and rapidly growing economy driving the Indian distribution transformer market. The Indian distribution transformer market is expected to grow at a rate of 6.5% (CAGR for 2024-2030) supported by increased demand. Rising energy requirements from industries and the expansion of transmission and distribution networks, coupled with the growth of the renewable energy sector, are anticipated to propel the Indian distribution transformer market. The rise in global electricity demand, driven by rapid urbanization, industrial growth, and population expansion, has necessitated significant grid expansion and modernization. Developing economies are particularly focused on enhancing their electricity distribution networks, which boosts demand for transformer components like bushings, cores, and windings. Additionally, increasing renewable energy integration requires transformers to efficiently transmit power generated from variable sources, further driving the need for advanced components.
The shift towards smart grid technologies is a major growth driver for the transformer component market. Governments and utilities worldwide are investing in digital substations and advanced monitoring systems that require high-quality transformer components with integrated sensors and monitoring capabilities. These advancements enable real-time diagnostics, predictive maintenance, and improved energy efficiency, creating opportunities for manufacturers to supply innovative, smart components. Stricter energy efficiency standards and environmental regulations are driving the adoption of transformers with reduced energy losses and lower carbon footprints. Transformer components, such as energy-efficient cores and eco-friendly insulating materials, are being developed to meet these requirements. Growing awareness of sustainability among industries and utilities is further propelling the demand for components that enhance transformer performance while adhering to environmental standards. Between 2019-24, the global transformer component market grown at a CAGR of 7.4% and reached $16.9 billion. It is expected to increase up to $28 billion between 2024 and 2030 at a CAGR of 8.8%.
The Indian market for transformer components, including parts of electrical transformers and inductors, is significant, reflecting the country's role as a global participant in the power and electronics industries. In 2022, India exported $468 million worth of these components, ranking it the 6th largest exporter globally. Key export destinations include the United States, Kuwait, and Oman, with notable growth in markets like Kuwait. Concurrently, India imported $538 million worth of components, primarily from China, Germany, and Vietnam. This trade highlights India's dual role as both a producer and consumer in the transformer component market.
Pros and strengths
One of the leading manufacturers of power, auto and inverter duty transformers in India: The company is one of the leading manufacturers of power, auto and inverter duty transformers in India, in terms of production volume as of Fiscal 2025. With over 30 years of experience in the transformer manufacturing industry, the company has established a legacy of quality and technology. Over the years, it 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: The company offers a broad and diversified product portfolio, which is designed to meet the diverse requirements of its customers. As of March 31, 2025, its portfolio comprises of 6 products, such as power transformers, inverter duty transformers, furnace transformers, generator transformers, and special duty transformers. Its ability to adapt transformer products to meet the specific needs of customers across a wide range of sectors provides it with a significant competitive advantage in the transformer market. It caters to a diverse customer base throughout the nation, providing a range of products tailored to various industry requirements. This extensive product portfolio underscores its commitment to innovation and quality, positioning it to effectively serve a wide array of sectors and acts as an insulator against slowdown in one particular industry.
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 2025. As of March 31, 2025, it has cultivated relationships with 208 customers of which 21are public sector undertakings and 187 are private sector players. Its customer base has expanded significantly, growing from 137 customers in Fiscal 2023 to 208 customers in Fiscal 2025, reflecting a compound annual growth rate (CAGR) of 23.22% and reaching 208 customers as of March 31, 2025. Its key customers span across various sectors, including the special purpose transformers, transmission, and renewables sector.
Manufacturing capabilities with focus on quality and high level of regulatory compliance: The company has robust manufacturing capabilities with a dedicated emphasis on quality, regulatory compliance, and health and safety measures. It has five manufacturing facilities and operates four fully operational manufacturing facilities, two located in Anand, Gujarat, one in Bengaluru, Karnataka and the Vadod Unit which has commenced commercial production in July, 2025 is located in Vadod, Gujarat, equipped with advanced technology to ensure the production of quality and various types of transformers. Further the Vadod Unit is designed to handle the manufacturing of transformers with a rated capacity of up to 500 MVA and 400 kV. The company’s present capabilities include 35 winding machines, eight core building stations, 14 core coil assembly stations, two vapor phase drying ovens, six vacuum drying ovens, and seven tanking workstations, enabling it to meet demanding production schedules.
Risks and concerns
Maximum revenue comes from top 10 customers: The company is dependent on its relationships with its customers. A substantial portion of its revenues is dependent on its top 10 customers. As of Fiscal 2025, Fiscal 2024 and Fiscal 2023, it derived 74.21%, 64.82% and 79.87% respectively, of its revenue from its top 10 customers. The loss of any of these customers, will materially and adversely affect its revenues and profitability.
Significant revenue comes from the supply of transformers to state electricity companies: The company derives a significant portion of its revenue from the supply of transformers to utilities including state electricity companies who constituted 65.85%, 65.46% and 80.47% of its revenue from operation during Fiscal 2025, Fiscal 2024 and Fiscal 2023. Additionally, its business is largely dependent upon the demand for power generation, transmission and distribution which is closely linked to Government policies. Any economy downturn or change in government policy may have an adverse impact on its business, financial condition, cash flows and results of operations.
Maximum revenue comes from government-controlled entities: A significant portion of the company’s revenue is derived from government-controlled entities, who follow the tendering process for determination of suppliers. The success rate of the company for Fiscals 2025, 2024 and 2023, is 18.00%, 29.03% and 25.42% respectively. It may be adversely affected if it does not succeed in all or a majority of the contracts that it tenders for.
Geographical constrain: A significant portion of its revenue is generated from manufacturing of transformers at its facilities situated in Gujarat. As of Fiscal 2025, Fiscal 2024 and Fiscal 2023, it derived 98.88%, 96.83% and 89.97% respectively, of its revenue from manufacturing facilities situated in Gujarat. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
Outlook
Atlanta Electricals manufactures power, auto and inverter duty transformers in India. As of March 31, 2025, the company's portfolio comprises six products: power transformers, inverter-duty transformers, furnace transformers, generator transformers, and special-duty transformers. The company has strong order book coupled with well diversified customer base. On the concern side, a significant portion of the company’s revenue is derived from government-controlled entities, who follow the tendering process for determination of suppliers. Moreover, it may be adversely affected if it does not succeed in all or a majority of the contracts that it tenders for. Moreover, a significant portion of the company’s revenue is generated from manufacturing of transformers at its facilities situated in Gujarat. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.
The issue has been offering 93,89,447 shares in a price band of Rs 718-754 per equity share. The aggregate size of the offer is around Rs 674.16 crore to Rs 707.96 crore based on lower and upper price band respectively. Minimum application is to be made for 19 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 43.41% to Rs 12,441.80 million for Fiscal 2025 from Rs 8,675.53 million for Fiscal 2024, primarily due to an increase in sales from power transformer which increased by 22.91% to Rs 9,306.52 million for Fiscal 2025 from Rs 7,572.08 million for Fiscal 2024. Moreover, the company’s profit after tax for the period increased by 87.25% to Rs 1,186.47 million for Fiscal 2025 from Rs 633.63 million for Fiscal 2024.
In line with the company’s expansion strategy, it is actively pursuing to infuse capital expenditure in critical transformer components which includes transformer tanks, frames, radiators and transformer insulation. It aims to continuously improve profitability through cost optimization, leveraging its backward integration capabilities, and increasing capacity utilization. By focusing on product improvements, quality control and dedicated research and development, it optimizes production processes. Its large size and scale enable it to produce higher volumes, spreading fixed costs more efficiently and reducing production costs on a per-unit basis, which allows it to lower unit sales prices and enhance competitiveness. This will not only lower production costs but also improve overall operational control.
