India’s EV scene is buzzing again, and this time it’s Ather Energy stepping into the spotlight. The Bengaluru-based electric scooter maker is launching its much-anticipated IPO, aiming to raise ₹2,980.76 crore. With a price band of ₹304–₹321 per share, the offering opens on April 28 and closes on April 30. Listing is expected on May 6 on both BSE and NSE.
🔍 IPO Snapshot
- Total Issue Size: ₹2,980.76 crore
- Fresh Issue: ₹2,626 crore
- Offer for Sale (OFS): ₹354.76 crore (1.1 crore shares)
- Price Band: ₹304–₹321 per share
- Lot Size: 46 shares
- Market Cap (Post-IPO): ~₹11,956 crore
- Anchor Investor Bidding: April 25
- Retail Reservation: 10% of the issue
- Employee Discount: ₹30 per share for up to 1 lakh shares
🏭 Where’s the Money Going?
Ather plans to utilize the IPO proceeds as follows:
- ₹927.2 crore to set up a new EV manufacturing plant in Maharashtra
- ₹750 crore for research and development
- ₹300 crore for marketing initiatives
- ₹40 crore to repay debt
These investments are slated for deployment over FY26 to FY28.
📉 Valuation Trimmed Amid Market Conditions
Originally eyeing a valuation of $2.5 billion, Ather has adjusted its expectations to approximately $1.4 billion. This 44% reduction reflects current market uncertainties and a strategic move to attract investors. Notably, major shareholder Hero MotoCorp, holding a 40% stake, will not be selling any shares in this IPO.
⚙️ Company Overview
- Founded: 2013 by Tarun Mehta and Swapnil Jain
- Products: Premium electric scooters, including the Ather 450X and the recently launched Rizta
- Market Position: Among the early entrants in India’s e-scooter market, though currently trailing behind competitors like Ola Electric, TVS Motor, and Bajaj Auto
📈 Financial Highlights
- Revenue Growth: 28% increase in the nine months ending December 2024
- Losses: Reduced, attributed to improved sales and operational efficiencies
- Future Outlook: Focus on expanding product lineup and reducing costs through new vehicle platforms
🧠 Should You Invest?
Ather Energy’s IPO presents an opportunity to invest in a pioneering EV company with a solid product lineup and growth potential. However, investors should consider the competitive landscape and the company’s current market position. As always, conduct thorough research or consult a financial advisor before making investment decisions.
Disclaimer: This article is for informational purposes only. Please consult a SEBI-registered advisor before making any investment decisions.