New Delhi, May 22 -- Atomberg Technologies Pvt Ltd, known for its brushless direct current (BLDC) fans and other smart home appliances, is close to filing a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI), two people familiar with the development told VCCircle.
The company, backed by investors such as Temasek and Jungle Ventures, is expected to file its DRHP within a month. The timeline assumes significance as Atomberg had earlier planned to file the papers by January and list by the first quarter of this year.
Public market activity had slowed down following the conflict in West Asia, which impacted the pace of IPO filings and fundraising activity. However, the market window has opened up somewhat in recent months, with a number of companies getting listed, although the overall sentiment remains cautious.
One of the bankers involved in the transaction said Atomberg's filing is likely within the next month. "It should be with SEBI by June or mid-July. The final contours of the draft papers are being shaped," the person said, requesting anonymity.
The company is targeting a valuation of over 6,000 crore ($626 million) and an issue size of Rs 1,500-2,000 crore, including an offer-for-sale (OFS).
"While there is a rough indication on valuation and issue size, the numbers are (still) getting finalized as the company approaches filing and listing," the second person said, also requesting anonymity.
Avendus Capital and IIFL Capital are advising Atomberg on the issue.
The firm had raised Rs 212 crore in a Series C extension round in December last year. The round was led by Temasek, and also saw participation from Jungle Ventures, Inflexor, and the company's co-founders. It valued the company at roughly Rs 5,000 crore post-money. In 2023, Temasek and Steadview Capital co-led a $86 million Series C funding round.
Previously, Atomberg raised capital from Parampara Capital, which first invested in its pre-Series A round in 2016; A91 Partners, which led its Series A round in 2019; and Jungle Ventures, which led a $20-million funding round in 2021.
Its other investors include Survam Partners, the family office of Hero Group's Suman Kant Munjal; Whiteboard Capital; and venture debt and equity investor Trifecta.
Atomberg has used capital from the earlier fundraises to accelerate product innovation, expand manufacturing, and strengthen its offline presence in tier II and III markets.
In FY25, it reported consolidated revenue of Rs 1,000 crore and a net loss of Rs 117.4 crore, according to VCCEdge, the data and research platform of VCCircle. Based on its revenue profile, the company is seeking a valuation of over Rs 6,000 crore and may look to push it higher through the planned IPO to create upside for existing and new investors.
Atomberg competes with several listed and privately held companies. Its listed peers include Crompton Greaves Consumer Electricals, Havells, and Bajaj Electricals, all of which generate higher revenue, command larger market capitalization, and operate with broader product portfolios.
Published by HT Digital Content Services with permission from VC Circle.