Electric two-wheeler innovator Ather Energy Ltd is making headlines with its recent fundraising efforts, securing an impressive ₹1,340 crore from anchor investors ahead of its highly anticipated IPO, set to commence on April 28. This marks the first major IPO of the 2025-26 financial year, showcasing the growing interest in the electric vehicle (EV) sector.
Significant Anchor Investment
In a regulatory filing, Ather Energy revealed that it has successfully allocated 4.17 crore shares to 36 anchor investors at the top price of ₹321 per share within the IPO price range of ₹304 – ₹321. This strong participation underscores the confidence that both domestic and global investors have in Ather’s potential.
Noteworthy Investor Participation
The anchor investment round attracted a mix of prestigious global and domestic firms, including:
- Custody Bank of Japan
- Franklin Templeton
- Abu Dhabi Investment Authority
- Eastspring Investments
- Morgan Stanley Investment Management
- Societe Generale
Additionally, several domestic mutual funds and insurance companies like PSBI Mutual Fund, Aditya Birla Sun Life, ICICI Prudential, Invesco, ITI Mutual Fund, and Union Mutual Fund contributed to the anchor round, demonstrating strong local support.
IPO Details and Usage of Proceeds
Ather Energy’s ₹2,981 crore IPO will be available for subscription from April 28 to April 30. The offer includes a fresh issue of ₹2,626 crore along with an offer-for-sale of 1.1 crore equity shares from existing shareholders and promoters. The funds raised will primarily support the establishment of a new electric two-wheeler manufacturing facility in Maharashtra and help in reducing existing debts.
At the upper limit of the price band, the overall valuation of Ather Energy is set at ₹11,956 crore, marking a significant milestone for the company. This IPO follows Ola Electric Mobility’s successful ₹6,145 crore IPO launched in August 2022, which also featured a substantial fresh issue.
Market Impact and Future Plans
As the launch date approaches, Ather Energy’s IPO is expected to invigorate the markets. Analysts from Nuvama predict that Ather may ride the wave of the booming EV trend, which is crucial for the industry’s future.
In addition to the IPO, Ather Energy is actively enhancing its research and development capabilities. The company recently announced plans to expand its R&D and testing facilities at its product validation center, indicating a commitment to innovation and growth.
Subscription Breakdown
The IPO allocation is structured as follows:
- 75% for qualified institutional buyers
- 15% for non-institutional investors
- 10% for retail investors
Leading the IPO’s book-running efforts are Axis Capital, JM Financial, Nomura Financial Advisory and Securities (India), and HSBC Securities & Capital Markets. Investors can expect the company’s shares to be listed on the stock exchanges by May 6.
This strategic move by Ather Energy highlights the increasing momentum in the electric vehicle sector and its potential for transformation in the two-wheeler market.
