The much-anticipated Initial Public Offering (IPO) of Ather Energy, an innovator in the electric vehicle (EV) sector, is set to launch on April 28. With a price range between ₹304 and ₹321 per share, this IPO has generated significant excitement among investors and the broader market. More than just a financial milestone, Ather Energy’s IPO represents a pivotal moment for India’s startup landscape, particularly highlighting the impactful role of the IIT Madras Incubation Cell.
A Historic Journey for Ather Energy
Founded in 2013, Ather Energy began its journey with crucial support from IIT Madras. The IITM Incubation Cell and IITM Rural Technology and Business Incubator took a calculated risk on the emerging EV company, providing essential resources like office space and mentorship in exchange for a 5% equity stake. Although this stake has experienced dilution through subsequent funding rounds, both entities now hold about 0.5% of Ather Energy.
- Total shares held by IITM entities pre-IPO: 15,58,170
- Estimated value at the upper price band: Over ₹50 crore
- Return on investment: An impressive 32,000%
A Profitable Investment for Incubators
As part of the IPO process, the IITM Incubation Cell plans to sell 31,050 shares, while the IITM Rural Technology and Business Incubator will offload 4,191 shares. This early investment is expected to yield returns exceeding ₹1.13 crore, showcasing the financial viability and growth potential of the EV market.
This IPO not only marks Ather Energy’s entry into the stock market but also stands as a landmark occasion, being the first public listing of a company nurtured by the IITM Incubation Cell.
Key Information on Ather Energy’s IPO
The Ather Energy IPO opens for subscriptions on Monday, April 28, and will conclude on Wednesday, April 30. Here are some essential details for prospective investors:
- IPO allotment date: Expected on May 2
- Listing date: Anticipated on May 6
- Price range: ₹304 to ₹321 per share
- Total amount to be raised: Approximately ₹2,980.76 crore
- Fresh issue: 8.18 crore equity shares worth ₹2,626 crore
- Offer for Sale (OFS): 1.11 crore shares valued at ₹354.76 crore
Leading Underwriters and Registrars
The book running lead managers for this IPO include Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India). Link Intime India will serve as the IPO registrar, ensuring a smooth process for investors.
In conclusion, the Ather Energy IPO not only symbolizes a significant achievement for the company but also reflects the strength of India’s nurturing startup ecosystem. As the market prepares for this exciting event, both investors and industry observers are keenly watching the developments. For more insights on the IPO landscape, visit our IPO news section.
