Atomberg files IPO papers for ₹450cr fresh issue
What's the story
Mumbai-based consumer appliances manufacturer Atomberg Technologies has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise up to ₹450 crore through a fresh issue of shares. Along with this, an offer for sale (OFS) of up to 76.5 million shares by existing investors is also on the cards.
Shareholders' participation
Major investors to offload shares in upcoming IPO
The upcoming IPO will see participation from several of Atomberg's existing investors. This includes A91 Partners, Jungle Ventures, V-Sciences Investments, Inflexor Ventures, Steadview Capital, and Survam Partners.
Together, these shareholders will offload a total of 76.5 million shares in the company as part of the offer for sale (OFS).
Fund allocation
Plans for funds raised from IPO
Atomberg Technologies has revealed its plans for the funds raised from the IPO.
The company intends to use ₹90 crore of the fresh issue proceeds to repay or prepay certain borrowings.
Another ₹150 crore has been earmarked for brand-building initiatives and performance marketing, while ₹100 crore will go toward research and development (R&D).
The remaining ₹110 crore will be used for general corporate purposes.
Investor benefits
Venture investors look to partially cash out
The upcoming IPO will not only provide Atomberg with fresh capital for its next phase of expansion but also give several of its venture investors a chance to partially cash out.
A91 Partners is currently the largest shareholder in Atomberg, holding a 21.02% stake, followed by co-founder Manoj Kumar Meena with 17.73%.
V-Sciences Investments and Jungle Ventures hold 11.8% and 10.03%, respectively, while co-founder Sibabrata Das owns 10.02%.
Company evolution
More about Atomberg Technologies
Founded in 2012 by Manoj Meena and Sibabrata (Shibam) Das, Atomberg started with energy-efficient BLDC ceiling fans.
The company has since diversified its product range to include mixer grinders, water purifiers, juicers, and smart locks.
Its subsidiary Atomberg Innovations also provides motors and controllers to companies such as Voltas, Godrej, and Blue Star.