Ather Energy Gears Up for IPO: What You Need to Know
Ather Energy, a prominent player in the electric scooter market, is set to revitalize the primary market with its much-anticipated initial public offering (IPO) at the end of this month. The Bengaluru-based manufacturer submitted its red herring prospectus to the Securities and Exchange Board of India (SEBI) on April 22, marking a significant event as it will be the first IPO since Quality Power Equipments’ ₹859 crore offering on February 18. Investors are eager, especially those backed by firms like Tiger Global and NIIF, as Ather focuses on innovation in electric two-wheelers (E2Ws).
Key Highlights of Ather Energy’s IPO
- IPO Opening and Closing Dates: The subscription period for Ather Energy’s IPO begins on April 28 and concludes on April 30.
- Price Band: The shares are priced between ₹304 and ₹321 each.
- Lot Size: A minimum of 46 equity shares must be purchased, with further investments in multiples of this number.
Company Overview and Market Position
Ather Energy stands out as a fully integrated electric vehicle (EV) manufacturer, focusing on the design, development, and assembly of electric scooters, battery packs, and essential infrastructure. The company recorded impressive sales, moving 107,983 E2Ws in the nine months ending December 31, 2024, and 109,577 E2Ws for the entire fiscal year 2024.
With a total of 265 experience centers and 233 service centers across India, alongside operations in Nepal and Sri Lanka, Ather Energy is poised for growth. Notably, HeroMoto Corp, holding about 40% of Ather’s shares, will retain its stake during this IPO.
Financial Insights and Investment Goals
The IPO comprises a fresh equity issuance worth ₹2,626 crore, along with an offer-for-sale (OFS) of 1.1 crore shares by existing shareholders. The proceeds will be strategically allocated as follows:
- ₹927.2 crore for a new manufacturing plant in Maharashtra
- ₹40 crore for debt repayment
- ₹750 crore dedicated to research and development
- ₹300 crore for marketing efforts
These funds will be utilized from FY 2026 to FY 2028 to bolster Ather’s growth trajectory.
Important Dates and Processes
- Allotment Date: The preliminary share allotment is scheduled for May 2, with refunds processed by May 5.
- Listing Date: Ather Energy’s shares are expected to debut on the BSE and NSE on May 6.
Management and Regulatory Framework
The lead managers for this IPO include Axis Capital, HSBC Securities, JM Financial, and Nomura Financial, with Link Intime India serving as the registrar.
Share Allocation Details
The IPO has specific reservations:
- 75% for qualified institutional buyers (QIB)
- 15% for non-institutional investors (NII)
- 10% for retail investors
Additionally, employees are allocated up to 100,000 shares at a ₹30 discount per share.
Current Market Sentiment
As of today, Ather Energy’s shares are trading at a grey market premium (GMP) of +11, suggesting a strong investor interest. This premium indicates that shares are expected to list at around ₹332, approximately 3.43% higher than the upper limit of the IPO price band.
With Ather Energy’s IPO on the horizon, investors are keenly watching this opportunity to engage with one of India’s most innovative EV manufacturers.
