The primary market is set to welcome a fresh wave of initial public offerings (IPOs) after a hiatus of over two months, with Ather Energy leading the charge. This much-anticipated IPO will kick off on Monday, April 28, and conclude on Wednesday, April 30. Ather Energy specializes in manufacturing electric two-wheelers (E2Ws) and boasts a comprehensive ecosystem that includes proprietary software, charging solutions, and smart accessories—entirely engineered in India.
Ather Energy IPO: Key Details
Ather Energy has established a price range for its IPO, fixed between ₹304 and ₹321 per equity share, with a face value of Re 1. The offering comprises a fresh equity share issuance totaling ₹2,626 crore, alongside an offer-for-sale (OFS) of 1.1 crore equity shares from promoters and existing shareholders.
Here’s how Ather plans to allocate the funds raised from the IPO:
- ₹927.2 crore for the construction of a new electric two-wheeler manufacturing facility in Maharashtra.
- ₹40 crore for debt repayment.
- ₹750 crore dedicated to research and development initiatives.
- ₹300 crore earmarked for marketing campaigns.
These investments are projected to unfold over the fiscal years 2026 to 2028.
Share Allocation Breakdown
The IPO has strategically allocated shares as follows:
- 75% to qualified institutional buyers (QIBs)
- 15% to non-institutional investors (NIIs)
- 10% reserved for retail investors
Additionally, 100,000 equity shares are set aside for employees, who will enjoy a ₹30 discount per share.
Important Dates to Remember
- Preliminary Share Allotment Date: Friday, May 2
- Refund Processing: Monday, May 5
- Shares Credited to Demat Accounts: Same day as refunds
- Expected Listing on BSE and NSE: Tuesday, May 6
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are managing the book-running for the IPO. The registrar for the offering is Link Intime India Private Ltd.
Market Insights: Ather Energy IPO GMP
In the unlisted grey market, shares of Ather Energy are currently trading at a premium of ₹3, according to investorgain. Based on the upper limit of the IPO price and this grey market premium, the estimated listing price for Ather Energy is projected to be around ₹324 per share, indicating a potential increase of 0.93% over the IPO price.
Should You Invest? Expert Opinions
Brokerage firm Bajaj Broking recommends a ‘subscribe for long-term’ strategy. They note that Ather Energy has reported an average Earnings Per Share (EPS) of ₹44.00 over the last three fiscal years, while the Return on Net Worth (RoNW) averaged –170.00%.
They advise that given the current financial landscape, this investment may be more suitable for informed investors with surplus funds and a long-term vision.
As the electric vehicle market continues to grow, Ather Energy’s IPO presents a compelling opportunity for those looking to invest in a sustainable future. Stay informed and consider your options carefully before participating in this exciting offering!
