Atomberg gets SEBI clearance for its IPO, with a Rs 450 crore fresh issue and a large investor sale

Consumer appliances maker Atomberg Technologies has received approval from the Securities and Exchange Board of India for its initial public offering. SEBI issued its observations on the company's draft papers on October 30, according to the regulator's weekly processing update reported by Moneycontrol and Inc42. Atomberg filed its draft red herring prospectus on August 20. The approval lets it file a red herring prospectus with the Registrar of Companies and launch the issue within a year, Moneycontrol reported.

The IPO combines a fresh issue of shares worth up to Rs 450 crore with an offer for sale of 7.65 crore shares (76,542,051 shares of face value Rs 10) by existing shareholders, according to Entrackr and YourStory. The sellers include A91 Partners, Temasek backed V-Sciences Investments, Jungle Ventures, Inflexor, Steadview Capital Mauritius and Survam Partners, PTI reported via Fortune India and Upstox. Entrackr reported that A91, a backer since 2019, has already sold shares worth about Rs 445 crore ahead of the listing while keeping a 21% stake. The price band and timeline have not been announced. The Economic Times reported in July that Atomberg was preparing for an offering of Rs 1,500 to 2,000 crore, with the final size depending on the price band.

Of the fresh issue, Rs 150 crore is earmarked for brand awareness and performance marketing, Rs 100 crore for research and development and Rs 90 crore to repay or prepay borrowings, with the rest for general corporate purposes, Entrackr and Inc42 reported. The company may also raise up to Rs 90 crore in a pre IPO placement, which would reduce the fresh issue by the same amount, according to Moneycontrol and ET Now. ICICI Securities, Avendus Capital and IIFL Capital Services are the book running lead managers.

Atomberg was founded in 2012 by Manoj Meena, who was joined by co-founder Sibabrata Das in 2013, and started with energy efficient ceiling fans before adding mixer grinders, water purifiers, cold pressed juicers and other appliances, Entrackr reported. Through its subsidiary Atomberg Innovations it also designs and supplies its own motors, controllers and other components to enterprise customers such as Voltas, Godrej and Blue Star. It runs two leased manufacturing facilities in Pune, including one at Chakan that began operations in FY2022, according to YourStory.

Revenue from operations rose 34.8% to Rs 1,293.77 crore in FY26 from Rs 959.51 crore in FY25, but adjusted EBITDA fell to Rs 37.12 crore from Rs 51.35 crore and the company reported a loss of Rs 148.88 crore, Entrackr reported. YourStory, citing the prospectus, reported that online channel revenue rose to Rs 456.45 crore in FY26 from Rs 234.51 crore in FY24 and offline revenue to Rs 820.11 crore from Rs 562.47 crore, with online contributing about 35.76% of consumer appliances revenue.