An IPO is usually the end of a startup’s private journey, but for Atomberg, the paperwork starts with a smaller number than you might expect. The consumer appliance maker’s board has approved raising up to Rs 450 crore through an initial public offering – and investors should note what happens if the company also pulls in a pre-IPO round.
Atomberg’s board passed a special resolution to raise up to Rs 450 crore via an IPO during an extraordinary general meeting held on August 12. The public issue will combine fresh equity issuance with an offer for sale by existing shareholders, subject to market conditions and SEBI approvals, according to disclosures filed with the MCA.
The pre-IPO twist
The board also approved raising up to Rs 90 crore through a pre-IPO placement of equity shares. Crucially, any money raised in the pre-IPO placement will reduce the fresh issue portion of the IPO, the filings said.
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“In the event of a pre-IPO placement, the size of the offer would be reduced from the fresh issue portion to the extent of equity shares issued under the pre-IPO placement subject to the offer satisfying the minimum offer size requirements under the SCRR and applicable laws,” the filings read. The development was first reported by Entrack.
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The pre-IPO transaction looks significantly larger than earlier believed. Atomberg had earlier sought to raise Rs 40 crore in a secondary funding round led by Forj Capital, cofounder Sibabrata Das told Inc42 last year.
From BLDC fans to a full appliance range
Founded in 2012 by IIT Bombay alumni Manooj Meena and Das, Atomberg began with B2B sales of energy-efficient BLDC fans before entering the consumer market in 2016. It has since diversified into mixer grinders, water purifiers and other categories, though fans still generate the largest share of revenue.
The startup sells through its own website, ecommerce platforms like Amazon and Flipkart, and offline channels. It has raised about $126.5 million to date from investors including Inflexor Ventures, Trifecta Capital Advisors, Steadview Capital, Temasek Holdings and Jungle Ventures.
The company had taken its first step toward listing a few weeks ago by converting into a public entity.
Financial health
Atomberg reduced its net loss by 41% to Rs 117 crore in FY25, while operating revenue jumped over 20% to Rs 958.4 crore. Expenses rose 9% to Rs 1,118.3 crore during the year. The startup is yet to disclose FY26 financial results.
What lies ahead
The Rs 450 crore IPO plan signals Atomberg’s confidence in its path to profitability. With losses narrowing sharply and revenue crossing the Rs 950 crore mark, the company is positioning itself for public markets at a time when Indian consumer appliance brands are finding strong demand. The size of the fresh issue, and how much the pre-IPO round trims it, will be the numbers to watch when the draft papers land.