Atomberg IPO: Gets SEBI Nod for ₹450 Crore IPO as FY26 Loss Widens

Consumer appliances manufacturer Atomberg Technologies has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its proposed initial public offering (IPO).

SEBI issued its observation letter to the company on October 30, 2026, after Atomberg filed its draft IPO papers in August. The proposed issue will comprise a fresh issue of equity shares worth up to ₹450 crore and an offer for sale (OFS) of up to 7.65 crore shares by existing shareholders.

Atomberg has not yet announced the IPO’s price band, opening date or final issue size. The company may also undertake a pre-IPO placement of up to ₹90 crore, which could reduce the size of the fresh issue if completed.

Atomberg to Use IPO Funds for Debt, Marketing and R&D

According to the company’s draft offer documents, Atomberg plans to use ₹90 crore from the fresh issue to repay or prepay certain borrowings.

Another ₹150 crore has been earmarked for brand awareness and performance marketing, while ₹100 crore will be allocated to research and development. The remaining proceeds will be used for general corporate purposes.

The OFS component will allow existing shareholders to sell part of their holdings. The proceeds from these sales will go to the selling shareholders and will not accrue to Atomberg.

The investors participating in the OFS include A91 Partners, Temasek-backed V-Sciences Investments, Jungle Ventures, Inflexor Ventures, Steadview Capital Mauritius and Survam Partners. Promoters Manoj Meena and Sibabrata Das are not selling shares in the proposed offer.

ICICI Securities, Avendus Capital and IIFL Capital Services are the book-running lead managers for the IPO.

Revenue Grows 35% as FY26 Loss Widens

Atomberg’s revenue from operations increased 34.8% year-on-year to ₹1,293.77 crore in FY26 from ₹959.51 crore in FY25.

However, the company remained loss-making. Its restated net loss widened 26.8% to ₹148.88 crore in FY26 from ₹117.41 crore in FY25. The company had reported a higher loss of ₹199.08 crore in FY24.

Adjusted EBITDA stood at ₹37.12 crore in FY26, compared with ₹51.35 crore in FY25. On a reported basis, EBITDA remained negative at ₹33 crore in FY26, compared with a loss of ₹20.79 crore in FY25.

Cash generation also came under pressure. Operating cash flow turned negative at ₹218.98 crore in FY26 compared with positive operating cash flow of ₹12.53 crore in FY25. The company’s borrowings increased to ₹257.53 crore in FY26 from ₹176.31 crore a year earlier.

The financial performance therefore shows a combination of higher revenue and continued pressure on profitability and cash generation as Atomberg expands its business.

Other Atomberg News: Atomberg Becomes Public Company Ahead of Proposed ₹2,000 Crore IPO

Expanding Beyond Ceiling Fans

Founded in 2012 by Manoj Meena, with Sibabrata Das joining as co-founder in 2013, Atomberg initially focused on energy-efficient ceiling fans. 

The company has since expanded into mixer grinders, water purifiers, cold-pressed juicers, smart locks and other household appliances. Through its subsidiary Atomberg Innovations, it also supplies proprietary motors, controllers and other components to enterprise customers including Voltas, Godrej and Blue Star.

Atomberg spent ₹86.79 crore on R&D in FY26, equivalent to 6.71% of its revenue from operations. Its R&D team had 254 engineers as of March 31, 2026, accounting for about 25% of its permanent workforce.

The company operates an omnichannel distribution network spanning retail outlets, distributors, e-commerce marketplaces and its own website.

As of March 31, 2026, Atomberg had approximately 626 distributors and direct dealers and 46,932 retail touchpoints across nearly 1,600 cities and towns. Its service network covered more than 18,000 PIN codes.

Atomberg operates two leased manufacturing facilities in Pune for its consumer appliances and proprietary components businesses.

What’s Next for Atomberg?

Following SEBI’s approval, Atomberg can move ahead with the next stages of its IPO process, including the filing of the red herring prospectus, finalisation of the price band and announcement of the issue schedule.

The company intends to use the fresh capital to reduce borrowings, increase brand and performance marketing and strengthen its R&D activities.

For investors, the IPO will also provide an opportunity to assess Atomberg’s expansion beyond fans, its growing revenue base and its ability to improve profitability and cash generation.

The company’s FY26 numbers show that revenue growth remains strong, but the higher net loss, negative operating cash flow and increased borrowings will remain important financial metrics as it moves towards a potential public listing.