Atlanta Electricals Ltd, a manufacturer of power, auto, and inverter duty transformers, announced on Wednesday the launch of its initial public offering (IPO) on September 22, aiming to raise Rs 687 crore. The price band for the shares has been set between Rs 718 and Rs 754 each, which gives the company an estimated valuation of around Rs 5,800 crore at the highest end of the price range. The IPO is expected to close on September 24, with bidding for anchor investors starting on September 19.
The IPO will consist of a fresh issue of equity shares worth Rs 400 crore and an offer-for-sale (OFS) of 38.1 lakh equity shares valued at Rs 287 crore at the upper end of the price band, from a promoter and other selling shareholders. Proceeds from the IPO will be used to pay down debt, support the company’s working capital needs, and for general corporate purposes.