Ather Energy, the Bengaluru-based electric vehicle manufacturer known for its innovative electric two-wheelers, is gearing up for its Initial Public Offering (IPO) with a price range set between ₹304 and ₹321 per share. This much-anticipated IPO is opening for subscriptions on April 28 and will conclude on April 30. Anchor investors will have the chance to secure their allocations on April 25, making this a significant event for the company and its stakeholders.
Key Information About Ather Energy’s IPO
- Price Band: ₹304 to ₹321 per equity share
- IPO Subscription Dates: April 28 to April 30
- Anchor Investor Allocation Date: April 25
- Lot Size: 46 equity shares, and in multiples of 46 thereafter
Ather Energy has structured its share allocation strategically. A substantial 75% of the shares will be set aside for Qualified Institutional Buyers (QIB), while 15% is reserved for Non-Institutional Investors (NII) and 10% for retail investors. Additionally, an exclusive allocation of up to 100,000 shares will be made available for employees at a discounted rate of ₹30 per share.
Timeline for Share Allotment and Listing
- Basis of Allotment Finalization: May 2
- Refund Initiation: May 5
- Shares Credited to Demat Accounts: May 5
- Expected Listing Date: May 6 on BSE and NSE
Ather Energy distinguishes itself by not only producing electric two-wheelers but also by creating a robust ecosystem that includes proprietary software, charging infrastructure, and smart accessories—all developed in India. The company focuses on in-house design for critical components such as motor controllers, chassis, and dashboards, while collaborating with third-party manufacturers for production.
Financial Performance and Future Plans
The recent financial report indicates a reduced loss of ₹578 crore for the nine months ending December, a decrease from ₹776 crore the previous year, attributed to increased sales of their flagship electric scooter, the Rizta.
The IPO comprises a fresh equity issuance valued at ₹2,626 crore along with an offer-for-sale (OFS) of 1.1 crore shares by existing shareholders, including prominent investors like the National Investment and Infrastructure Fund II and IITM Incubation Cell.
Utilization of IPO Proceeds
Ather Energy has ambitious plans for the funds raised through the IPO:
- ₹927.2 crore for setting up a new electric two-wheeler manufacturing facility in Maharashtra
- ₹40 crore aimed at debt reduction
- ₹750 crore to boost research and development efforts
- ₹300 crore earmarked for marketing initiatives
This strategic allocation of resources is designed to enhance Ather’s market presence and propel growth in the rapidly evolving electric vehicle sector.
Underwriters and Advisors
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are leading the underwriting process for this IPO, while Link Intime India Private Ltd will handle the registrar duties.
As Ather Energy prepares to make its mark on the public market, investors and industry watchers are keenly anticipating the impact of this IPO on the electric vehicle landscape in India.
