Atomberg Technologies, the Indian consumer appliances startup known for its energy-efficient ceiling fans, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its proposed initial public offering (IPO). The offering comprises a fresh issue of equity shares worth up to ₹450 crore and an offer for sale (OFS) of approximately 7.65 crore shares by existing shareholders. The company filed its draft IPO papers in August 2026.
The IPO marks an important step in Atomberg’s journey from a specialised ceiling fan manufacturer to a broader consumer appliances and technology company. The fresh capital will be used for debt repayment, brand awareness and research and development (R&D). Meanwhile, existing investors, including A91 Partners, Temasek and other venture capital firms, will have an opportunity to partially reduce their holdings. The company has not yet announced its IPO price band, valuation or listing date.
Key Takeaways
- SEBI approval: Atomberg Technologies received regulatory observations for its proposed IPO on October 30, 2026.
- Fresh issue: Up to ₹450 crore.
- Offer for sale: Approximately 7.65 crore shares by existing shareholders.
- Debt repayment: ₹90 crore earmarked for repayment or prepayment of borrowings.
- Marketing: ₹150 crore allocated to brand awareness and performance marketing.
- Research and development: ₹100 crore planned for R&D.
- FY26 revenue: ₹1,293.77 crore, up 34.8% year-on-year.
- FY26 loss: ₹148.88 crore.
- IPO timeline: Price band and launch date have not been announced.
Atomberg Receives SEBI Approval for ₹450 Crore IPO
Atomberg Technologies received SEBI’s observations on its draft red herring prospectus (DRHP) on October 30, 2026.
The company had filed its IPO papers in August, proposing a fresh issue of shares worth up to ₹450 crore along with an OFS of approximately 7.65 crore shares.
SEBI’s observations allow the company to proceed with the next stages of the IPO process, including filing its updated offer documents with the Registrar of Companies and preparing for the public issue.
However, regulatory approval does not mean that the IPO will open immediately. The company must still finalise its issue structure, price band, investor allocation and launch schedule.
The final issue size will also depend on the eventual offer terms and whether the company undertakes a pre-IPO placement.
IPO structure
| IPO component | Details |
|---|---|
| Fresh issue | Up to ₹450 crore |
| Offer for sale | Approximately 7.65 crore shares |
| Pre-IPO placement | Up to ₹90 crore may be considered |
| Price band | Not announced |
| IPO opening date | Not announced |
| Listing date | Not announced |
| Lead managers | ICICI Securities, Avendus Capital and IIFL Capital Services |
The fresh issue will bring new capital into Atomberg, while proceeds from the OFS will go directly to the existing shareholders selling their shares.
How Atomberg Plans to Use the ₹450 Crore IPO Proceeds
Atomberg has outlined several uses for the money it plans to raise through the fresh issue.
The largest allocation is towards brand awareness and performance marketing, followed by research and development.
| Planned use | Amount |
|---|---|
| Repayment or prepayment of borrowings | ₹90 crore |
| Brand awareness and performance marketing | ₹150 crore |
| Research and development | ₹100 crore |
| General corporate purposes | ₹110 crore |
| Total | ₹450 crore |
1. Debt repayment
Atomberg plans to allocate ₹90 crore towards repayment or prepayment of certain borrowings.
Reducing debt could help lower financing costs and strengthen its balance sheet. It may also provide the company with additional financial flexibility as it expands its product portfolio and distribution network.
2. Brand awareness and marketing
The company has earmarked ₹150 crore for brand awareness and performance marketing.
This investment is important because Atomberg competes with established consumer appliance brands such as Havells, Crompton, Orient Electric and Bajaj Electricals.
Its growth will depend not only on product innovation but also on increasing brand recognition, expanding distribution and attracting customers across different price segments.
3. Research and development
Atomberg plans to invest ₹100 crore in R&D.
The company has built its business around energy-efficient brushless direct current (BLDC) motors, which consume less electricity than conventional induction motors.
Additional R&D spending could support improvements in motor technology, product performance, energy efficiency and the development of new appliances.
The remaining ₹110 crore will be allocated towards general corporate purposes.
Atomberg Revenue Rises 34.8% to ₹1,294 Crore in FY26
Atomberg’s revenue from operations increased 34.8% to ₹1,293.77 crore in FY26, compared with ₹959.51 crore in FY25.
The company had generated ₹796.98 crore in FY24, showing continued revenue expansion over the three-year period.
However, profitability remains an important challenge.
Its adjusted EBITDA declined to ₹37.12 crore in FY26 from ₹51.35 crore in FY25. The company also reported a loss of ₹148.88 crore in FY26, compared with a loss of ₹199.08 crore in FY24.
Atomberg’s financial performance
| Financial metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | ₹796.98 crore | ₹959.51 crore | ₹1,293.77 crore |
| Adjusted EBITDA | ₹152.07 crore | ₹51.35 crore | ₹37.12 crore |
| Net loss | ₹199.08 crore | — | ₹148.88 crore |
Figures are based on reported IPO disclosures. The FY25 net-loss figure is not included in this comparison.
The numbers show that Atomberg has achieved strong revenue growth, but adjusted EBITDA has declined over the past two financial years.
This suggests that increasing sales have not yet translated into stronger adjusted operating earnings. The company will need to demonstrate that its marketing, manufacturing and distribution investments can eventually support sustainable profitability.
Atomberg’s Business Expands Beyond Energy-Efficient Fans
Atomberg was founded in 2012 by Manoj Meena, with Sibabrata Das joining as co-founder in 2013.
The company initially focused on energy-efficient ceiling fans powered by BLDC motor technology.
Its products were designed to offer lower electricity consumption compared with traditional ceiling fans, creating a market around energy efficiency and technology-led home appliances.
Over time, Atomberg expanded its consumer product portfolio to include:
- Ceiling fans
- Mixer grinders
- Water purifiers
- Cold-pressed juicers
- Smart locks
The company has also developed a business supplying proprietary motors, controllers and other components to established appliance manufacturers through its subsidiary, Atomberg Innovations.
Its enterprise customers include Voltas, Godrej and Blue Star.
This business gives Atomberg exposure to both consumer appliances and the broader appliance manufacturing supply chain.
Atomberg Holds 46% Market Share in Premium Fans
Atomberg has established a significant presence in India’s premium ceiling fan market.
According to the Redseer report cited in the company’s IPO disclosures, Atomberg held a 46.08% market share by cumulative sales value in India’s premium fans segment in FY26.
The category includes fans with an average selling price above ₹3,500.
This market position reflects the company’s focus on energy-efficient fans and its technology-led product positioning.
However, the premium fan segment is competitive, with established electrical appliance manufacturers investing in BLDC technology and expanding their own premium product offerings.
Maintaining market share will require continued product innovation, distribution expansion and effective marketing.
Atomberg Expands Distribution Across 1,600 Cities
Atomberg has built a substantial distribution and service network across India.
As of March 31, 2026, its general trade network included approximately 626 distributors and direct dealers, along with 46,932 retail touchpoints.
The company had a presence across approximately 1,600 cities and towns, while its service network covered more than 18,000 pin codes.
Its sales are distributed across online and offline channels.
In FY26, online revenue reached ₹456.45 crore, compared with ₹234.51 crore in FY24. Offline revenue increased to ₹820.11 crore from ₹562.47 crore over the same period.
The expansion of offline distribution is particularly important for consumer appliances because customers often prefer to examine products in physical stores before making purchases.
A wider service network also helps companies build customer confidence in products that require installation, maintenance or repairs.
Existing Investors Prepare for Partial Exit Through OFS
The proposed IPO will also provide an opportunity for Atomberg’s existing investors to sell part of their holdings.
The offer for sale includes approximately 7.65 crore shares held by existing shareholders.
Investors involved in the proposed OFS include A91 Partners, Temasek, Jungle Ventures, Inflexor Ventures, Steadview Capital and Survam Partners.
A91 Partners, one of Atomberg’s major investors, has already sold shares worth approximately ₹445 crore while retaining a stake of around 21%, according to Entrackr’s reporting of the IPO disclosures.
The OFS allows early investors to realise part of their investment without requiring the company to issue additional shares for that portion of the offering.
It is important to distinguish between the two components: the ₹450 crore fresh issue will raise money for Atomberg, while the OFS proceeds will go to the selling shareholders.
The Bigger Picture
Atomberg’s proposed IPO reflects the growing interest in India’s consumer technology and home appliance manufacturing sector. The company has expanded from energy-efficient fans into multiple appliance categories, built a network of nearly 47,000 retail touchpoints and reported FY26 revenue of ₹1,293.77 crore. Its market position in premium fans gives it an established business base as it prepares for public markets.
However, the financial disclosures also highlight the challenge of balancing expansion with profitability. Adjusted EBITDA declined to ₹37.12 crore in FY26 despite revenue growth, and the company continued to report a net loss. The IPO will provide capital for marketing, R&D and debt repayment, but investors will likely pay close attention to whether these investments improve margins and generate sustainable earnings.
Looking Ahead
Atomberg will now move towards the next stages of its IPO process, including finalising the offer documents, price band and issue timeline. The company is expected to use the proposed fresh capital to strengthen its brand, develop new products and manage borrowings. Its ability to expand beyond premium fans while maintaining product differentiation will be an important part of its growth strategy.
For prospective investors, the key indicators will include revenue growth, adjusted EBITDA, net losses, R&D spending, distribution expansion and the performance of its newer appliance categories. SEBI approval moves Atomberg closer to the public markets, but the final IPO valuation and offer details will be important in assessing the offering.
Frequently Asked Questions
1. Has Atomberg received SEBI approval for its IPO?
Yes. Atomberg Technologies received SEBI’s observations on its proposed IPO on October 30, 2026, allowing it to proceed with the next stages of the listing process.
2. How much money does Atomberg plan to raise through its IPO?
Atomberg plans to raise up to ₹450 crore through a fresh issue of equity shares, alongside an offer for sale of approximately 7.65 crore shares by existing investors.
3. How will Atomberg use the IPO proceeds?
The company plans to use ₹90 crore for debt repayment, ₹150 crore for brand awareness and performance marketing, ₹100 crore for R&D and the remaining ₹110 crore for general corporate purposes.
4. What was Atomberg’s revenue in FY26?
Atomberg reported revenue from operations of ₹1,293.77 crore in FY26, compared with ₹959.51 crore in FY25.
5. Is Atomberg profitable?
No. Atomberg reported a net loss of ₹148.88 crore in FY26. Its adjusted EBITDA was ₹37.12 crore, down from ₹51.35 crore in FY25.
6. Who founded Atomberg?
Atomberg was founded in 2012 by Manoj Meena. Sibabrata Das joined as co-founder in 2013.
7. Which investors are selling shares in Atomberg’s IPO?
Existing shareholders participating in the OFS include A91 Partners, Temasek, Jungle Ventures, Inflexor Ventures, Steadview Capital and Survam Partners.
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