Atlanta Electricals Limited files DRHP with SEBI for IPO

Atlanta Electrical Limited, one of the leading manufacturers of power, auto and inverter duty transformers in India, terms of production volume as of Fiscal 2024 (Source: CRISIL Report) has filed with SEBI for an Initial Public Offering (IPO).

The company is of the few companies in India, manufacturing transformers up to and including 200 Mega Volt-Amp (“MVA”) capacity and with 220 kilovolts (“kV”) voltage (Source: CRISIL Report).

Krupeshbhai Narharibhai Patel, Niral Krupeshbhai Patel, Amish Krupeshbhai Patel, Tanmay Surendrabhai Patel, 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 are the promoters of the company.

The public offer comprises of a fresh issue of equity shares of face value of Rs. 2 each aggregating up to Rs. 400 crore and an offer for sale of up to 3,810,895 equity shares. The offer includes a reservation of equity shares for subscription by eligible employees.

The company proposes to utilize the net proceeds towards Repayment/ prepayment in full or in part of certain outstanding borrowings availed by the Company, funding working capital requirements of the company and general corporate purposes.

The offer for sale of up to 3,810,895 equity shares of face value of ₹2 each comprises of  up to 435,900 equity shares by Atlanta UHV Transformers LLP (Promoter Selling Shareholder) ; up to 666,560 equity shares by Hemang Harendra Shah; up to 777,185 equity shares by Nimish Harendra Shah; up to 217,500 equity shares  by Dhaval Harshadbhai Mehta (held jointly with Avanee Dhavalbhai Mehta); up to 326,250 equity shares by Gitaben Harshadbhai Mehta (held jointly with Harshadbhai Amritlal Mehta); up to 1,387,500 equity shares by Jignesh Suryakant Patel (Other Selling Shareholders)  (collectively, “selling shareholders” and such offer for sale of equity shares by the selling shareholders, the “offer for sale”).

The company, in consultation with the BRLMs, may consider a further issue of specified securities through a preferential issue or any other method, as may be permitted under the applicable law, aggregating up to Rs. 80 crore prior to the filing of the Red Herring Prospectus (the “Pre-IPO Placement”). The Pre-IPO Placement, if undertaken, will be at a price to be decided by the Company, in consultation with the BRLMs. If the Pre-IPO Placement is completed, the amount raised pursuant to the Pre-IPO Placement will be reduced from the Fresh Issue, subject to compliance with Rule 19(2) (b) of the SCRR.

Motilal Oswal Investment Advisors Limited and Axis Capital Limited are the Book Running Lead Managers to the Issue.

The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges, being BSE Limited (the “BSE”) and National Stock Exchange of India Limited (the “NSE”, together with BSE, the “Stock Exchanges”).