Atlanta Electricals shares off to a firm start, list at 14% premium over IPO price

Atlanta Electricals IPO listing: Against solid demand for the company's initial public offering (IPO) and firm grey market premium (GMP), Atlanta Electricals shares witnessed a decent debut in the Indian stock market today, September 29.

Atlanta Electricals share price listed at ₹858.10 on the BSE, a premium of ₹104.10, or 13.81%, over the IPO price of ₹754. Meanwhile, on NSE, Atlanta Electricals' stock debuted at a premium of 13.66% at ₹857 apiece.

The listing met Street expectations as visible from the company's GMP. Ahead of the stock market debut today, Atlanta Electricals' IPO GMP was ₹114, signalling a listing pop of 15%.

Atlanta Electricals IPO Details

The company also witnessed a robust demand for its initial share sale that ran from September 22 to September 24. Atlanta Electricals' IPO was booked 72.16 times, with the retail portion subscribed 10.76 times, the non-institutional investor (NII) quota booked 55.82 times and the qualified institutional buyer (QIB) part garnering a massive 194.77 times bids.

The ₹687.85 crore book-built issue was a combination of fresh share sale of ₹400.51 crore and an offer for sale of ₹287.34 crore.

The price band for Atlanta Electricals' IPO was set at ₹718 to ₹754 per share. The lot size was fixed at 19 shares, requiring an investment of ₹14,326 at the upper end of the price band.

The company plans to use a part of the proceeds from the fresh share sale, worth ₹79.12 crore, for repayment of certain outstanding borrowings availed by the company. Additionally, it has earmarked ₹210 crore for funding working capital needs and the remaining for general corporate purposes.

The allotment for Atlanta Electricals' IPO was finalised on September 25. Meanwhile, the shares were credited to the demat account on September 26, while the refunds were also initiated on the same day.

Atlanta Electricals manufactures power, auto and inverter duty transformers in India. Its portfolio comprises six products: power transformers, inverter-duty transformers, furnace transformers, generator transformers, and special-duty transformers.

Motilal Oswal Investment Advisors acted as the book-running lead manager, and MUFG Intime India was the registrar of the issue.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.