Atlantia Electricals files IPO papers with Sebi, aims to raise Rs 400 cr

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Atlanta Electricals Ltd, manufacturer of power, auto and inverter duty transformers, has filed preliminary papers with capital markets regulator Sebi seeking its approval to raise funds through an initial public offering (IPO).

The Gujarat-based company's IPO is a combination of a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of 38.1 lakh equity shares by a promoter and other selling shareholders, according to the draft red herring prospectus (DRHP) filed on Tuesday.

The offer includes a reservation of equity shares for subscription by eligible employees.

Besides, the company may consider raising Rs 80 crore in a pre-IPO placement round. If such placement is undertaken, the size of the fresh issue will be reduced.

The company proposes to utilize the proceeds from the issue for payment of debt, supporting working capital requirements of the company and for general corporate purposes.

According to a Crisil report, India's transformer market is driven by the relentless growth in electricity demand, with per capita consumption surging by over 50 per cent in the last decade. Also, the government is investing in the renewable energy sector and expanding the power transmission network, which will create opportunities for the transformer market's growth.

Motilal Oswal Investment Advisors and Axis Capital are the book-running lead managers to the issue. 

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BS reporter 

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