Atlanta Electricals IPO

Atlanta Electricals Limited IPO Strengths

• Leading Transformer Manufacturer in India

Atlanta Electricals Limited is a leading manufacturer of power, auto, and inverter duty transformers in India. With over 30 years of experience, it has expanded across 19 states and three union territories, ensuring high-quality solutions through innovation, stringent quality standards, and a strong market presence.

• Broad and Diversified Product Portfolio

Atlanta Electricals Limited offers a diverse product portfolio tailored to meet customer requirements. As of September 30, 2024, the portfolio includes power, auto, inverter duty, furnace, generator, and special duty transformers. The company specializes in customized solutions, catering to challenging operational environments while ensuring innovation, quality, and comprehensive after-sales support.

• Strong Order Book and Diversified Customer Base

Atlanta Electricals Limited has a robust order book and a well-diversified customer base. As of September 30, 2024, it has relationships with 208 customers, including 21 public sector undertakings and 187 private sector players. The company’s order book reached ₹12,833.21 million, supported by strong demand across transmission, renewables, and infrastructure sectors.

• Advanced Manufacturing Capabilities with Emphasis on Quality and Compliance

Atlanta Electricals Limited operates three advanced manufacturing facilities with an upcoming unit in Gujarat. With 35 winding machines, NABL-accredited labs, and an installed capacity of 16,740 MVA, the company ensures precision, compliance, and ISO-certified quality. Rigorous testing and strict process controls uphold industry standards and operational excellence.

• Experienced Leadership and Skilled Professionals

Atlanta Electricals Limited is led by a seasoned management team with decades of expertise. Key leaders, including Mr. Krupeshbhai Patel and Mr. Tanmay Patel, bring extensive experience in transformers and electrical manufacturing. Supported by 301 professionals, the team’s strategic vision drives operational excellence and business expansion.

• Strong Financial Performance and Market Leadership

With a proven track record of profitability, Atlanta Electricals Limited reported ₹5,701.41 million in revenue for the six-month period ending September 30, 2024. Maintaining a disciplined financial approach with a 0.31 debt-to-equity ratio, the company ensures stability, operational efficiency, and sustained growth in a competitive industry.

More About Atlanta Electricals Limited

Industry Leadership

• Atlanta Electricals Limited is a key player in India’s power, auto, and inverter duty transformer manufacturing sector.

• Among the few companies producing transformers up to 200 MVA capacity and 220 kV voltage (Source: CRISIL Report).

• Rapid revenue growth from ₹ 6,256.62 million in Fiscal 2022 to ₹ 8,675.53 million in Fiscal 2024 at a CAGR of 38.66%.

Growing Market Demand

• Expansion in data centres, EV charging networks, and high-speed railways is driving transformer demand.

• India’s renewable energy sector targets 500 GW non-fossil fuel capacity by 2030, increasing demand for compact and robust transformers.

• Successfully supplied eight 80 MVA, 220/33 kV power transformers for Ultra Mega Solar Park, Andhra Pradesh.

Comprehensive Product Portfolio

Atlanta Electricals Limited manufactures a wide range of transformers:

• Auto Transformer: 66 kV to 220 kV

• Inverter Duty Transformer: 0.60 kV to 33 kV

• Furnace Transformer: 0.43 kV to 66 kV

• Power Transformer: 11 kV to 220 kV

• Generator Transformer: 3.30 kV to 220 kV

• Special Duty Transformer: 0.43 kV to 132 kV

Strong Market Presence

• Customer base across 19 states and three union territories.

• Supplied 4,000 transformers totaling 78,000 MVA to national grids and private sectors.

• Order book valued at ₹ 12,833.21 million as of September 30, 2024.

Manufacturing Excellence

• Three operational facilities in Anand (Gujarat) and Bengaluru (Karnataka), with a new facility under construction in Vadod, Gujarat.

• Combined capacity of 47,280 MVA across all four facilities.

• NABL-accredited labs ensuring quality control with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications.

Established Industry Relationships

• Strong collaborations with key players like GETCO, Adani Green Energy, TATA Power, and SMS India.

• Diversified customer base of 208 companies, reinforcing its position as a trusted transformer supplier in India.

Industry Outlook

Market Growth and CAGR

• The Indian power transformer market was valued at approximately USD 2.13 billion in 2023 and is projected to reach USD 4.12 billion by 2032, exhibiting a CAGR of 7.20% during 2024-2032.

• The combined power and distribution transformer market in India is expected to grow at a CAGR of around 10.84% between 2024 and 2030, with market size increasing from USD 3.97 billion in 2023 to approximately USD 8.41 billion by 2030.

Key Growth Drivers

• Infrastructure Development: Rapid urbanization and industrialization necessitate the expansion and modernization of power transmission and distribution networks.

• Renewable Energy Integration: The incorporation of renewable energy sources, such as solar and wind power, into the national grid requires advanced transformer technologies to manage variable power loads.

• Government Initiatives: Programs like the Integrated Power Development Scheme (IPDS) and increased budgets for renewable energy projects are propelling demand for transformers.

• Grid Modernization: Efforts to upgrade aging power infrastructure to enhance efficiency and reliability are driving the need for new transformers.

Future Outlook

The Indian transformer market is set for robust growth, driven by increasing electricity demand, supportive government policies, and the integration of renewable energy sources. Companies like Atlanta Electricals Limited are well-positioned to capitalize on these opportunities by providing essential components for the evolving power sector.

How Will Atlanta Electricals Limited Benefit

• Industry Leadership: Atlanta Electricals Limited, a leader in high-capacity transformers, will capitalize on India’s expanding power sector with its expertise in manufacturing transformers up to 200 MVA and 220 kV.

• Growing Market Demand: With India’s push for 500 GW renewable capacity and the rise of EV charging and data centres, Atlanta’s transformers will be essential for meeting increasing power infrastructure needs.

• Comprehensive Product Portfolio: Its diverse transformer offerings, including auto, inverter duty, and furnace transformers, position Atlanta to cater to a broad range of industrial and power sector applications.

• Strong Market Presence: Operating across 19 states and three union territories, Atlanta has supplied 4,000 transformers totaling 78,000 MVA, ensuring steady demand and reinforcing its nationwide footprint.

• Manufacturing Excellence: With facilities in Anand, Bengaluru, and Vadod, and a combined capacity of 47,280 MVA, Atlanta ensures high-quality, large-scale production to meet growing market requirements.

• Established Industry Relationships: Collaborations with industry leaders like GETCO, Adani, and TATA Power provide Atlanta with a competitive edge, securing consistent orders and enhancing its market credibility.

Atlanta Electricals Limited IPO Overview

Atlanta Electricals Ltd, a Gujarat-based transformer manufacturer, has filed IPO papers with SEBI to raise funds. The IPO includes a fresh issue of ₹400 crore and an offer for sale of 0.38 crore shares by promoters and other stakeholders. The issue features a reservation for eligible employees. Motilal Oswal Investment Advisors Ltd and Axis Capital Ltd are the book-running lead managers, while Link Intime India Pvt Ltd is the registrar. The shares have a face value of ₹2 each.

Atlanta Electricals Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue: ₹400 crore Offer for Sale (OFS): 0.38 crore equity shares
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹2 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post -issue	TBA

Atlanta Electricals IPO Important Dates

IPO Activity	Date
IPO Open Date	TBA
IPO Close Date	TBA
Basis of Allotment Date	TBA
Refunds Initiation	TBA
Credit of Shares to Demat	TBA
IPO Listing Date	TBA

Atlanta Electricals IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Atlanta Electricals Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	8.87
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	27.80%
Net Asset Value (NAV)	31.92
Return on Equity	27.80%
Return on Capital Employed (ROCE)	42.34%
EBITDA Margin	14.20%
PAT Margin	7.32%
Debt to Equity Ratio	0.31

Peer Group Comparison

Name of the Company	Revenue  (₹ million)	Face Value (₹)	P/E	EPS (₹)	RoNW (%)	NAV (₹)
Atlanta Electricals Limited	8,675.53	2.00	NA	8.87	27.80%	31.92
Peer Groups
Voltamp Transformers Limited	16,162.23	10.00	27.51	303.80	22.71%	1,337.94
Transformers and Rectifiers India Ltd	12,946.76	1.00	274.26	3.24	8.48%	38.89
Danish Power Limited	3,324.76	10.00	34.16	26.04	46.36%	510.36

Key Insights

• Revenue: Atlanta Electricals Limited reported revenue of ₹8,675.53 million, positioning it between Transformers and Rectifiers India Ltd (₹12,946.76 million) and Danish Power Limited (₹3,324.6 million). Voltamp Transformers Limited leads the group with ₹16,162.23 million in revenue. This indicates that Atlanta Electricals is a mid-sized player, with strong revenue generation but still growing compared to Voltamp. The company’s revenue performance suggests a solid market presence and growth potential.

• Face Value: Atlanta Electricals Limited has a face value of ₹2.00, lower than Voltamp (₹10.00) and Danish Power (₹10.00), but higher than Transformers and Rectifiers India Ltd (₹1.00). Face value does not impact stock price directly but affects stock splits and investor perception. A lower face value often allows for easier liquidity and accessibility for investors, making Atlanta’s offering more attractive in certain market conditions.

• Price-to-Earnings (P/E) Ratio: The P/E ratio for Atlanta Electricals Limited is unavailable (NA), while its peers vary significantly. Transformers and Rectifiers India Ltd has the highest P/E at 274.26, followed by Danish Power Limited at 34.16, and Voltamp Transformers at 27.51. A high P/E suggests premium valuation, possibly due to high growth expectations or strong investor confidence. Atlanta’s future P/E will be crucial in determining its market positioning post-IPO.

• Earnings Per Share: Atlanta Electricals Limited has an EPS of ₹8.87, which is higher than Transformers and Rectifiers India Ltd (₹3.24) but significantly lower than Danish Power Limited (₹26.04) and Voltamp Transformers (₹303.80). A higher EPS generally indicates better profitability per share. Atlanta’s EPS suggests strong earnings potential but is still developing compared to Voltamp’s well-established earnings performance.

• Return on Net Worth: Atlanta Electricals Limited has an RoNW of 27.80%, higher than Voltamp (22.71%) and Transformers and Rectifiers India Ltd (8.48%), but lower than Danish Power Limited (46.36%). RoNW indicates how efficiently a company is utilizing its net worth to generate profits. Atlanta’s strong RoNW suggests efficient capital utilization, making it a competitive player in the industry.

• Net Asset Value: Atlanta Electricals Limited has a NAV of ₹31.92, lower than Voltamp (₹1,337.94) and Danish Power Limited (₹510.36), but close to Transformers and Rectifiers India Ltd (₹38.89). NAV represents the company’s book value per share, with higher values indicating stronger financial stability. Atlanta’s NAV suggests a growing asset base, but it is still developing compared to its larger peers like Voltamp.

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Re-payment/ pre-payment, in full or in part, of certain outstanding borrowings availed by our Company	791.20
Funding working capital requirements of our Company	2100
General corporate purposes*	[●]

Note: *To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC

Atlanta Electricals Limited Financials (in million)

Particulars	30 Sept 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	6725.30	5592.51	5607.60	4145.83
Revenue	5701.41	8675.53	8738.83	6256.62
Profit After Tax	512.78	633.62	875.41	552.54
Reserves and Surplus	2690.77	2141.55	1505.78	633.80
Total Borrowings	881.35	485.96	730.93	758.90
Total Liabilities	3891.36	3307.79	3958.65	3368.86

Key Strategies for Atlanta Electricals Limited 

• Capital Expenditure for Capacity Expansion and Backward Integration

Atlanta Electricals Limited is investing in capital expenditure to expand capacity and enhance backward integration by manufacturing key transformer components. This approach optimizes costs, improves production efficiency, strengthens supply chains, and increases operational control to enhance competitiveness and profitability.

• Expanding Global Customer Base and Increasing Wallet Share

Atlanta Electricals Limited aims to expand its global footprint by targeting emerging markets, entering high-voltage segments, and leveraging strategic partnerships. By offering innovative transformer solutions and enhancing after-sales support, the company seeks to strengthen customer relationships and increase wallet share.

• Increasing Market Share Through Enhanced Utilization Levels

Atlanta Electricals Limited is optimizing capacity utilization by improving operational efficiency, increasing production volumes, and leveraging digital tools. Through strategic expansions and financial discipline, the company aims to reduce costs, enhance product quality, and capture a larger share of the transformer market.

• Strengthening Brand Presence with Targeted Marketing Initiatives

Atlanta Electricals Limited is enhancing brand visibility through multi-channel marketing, direct customer engagement, and promotional activities. By reinforcing its reputation for innovation and reliability, the company aims to differentiate itself from competitors and establish itself as a leader in the transformer industry.