Ather Energy IPO: Key Details About The ₹2,981 Crore EV Maker's Public Offering
The Indian primary market is set to witness its first mainboard initial public offering (IPO) of the financial year 2025-26, with electric two-wheeler manufacturer Ather Energy scheduled to open its ₹2,981 crore public issue on April 28. This marks the end of a two-month IPO drought, as no mainboard listings have occurred since mid-February.
As the electric vehicle revolution gains momentum in India, Ather Energy's public offering presents an opportunity for investors to gain exposure to this rapidly evolving sector. Let's examine the essential details investors should consider before the subscription window opens.
Essential Details of Ather Energy's IPO
Here are the critical aspects of the upcoming public offering that potential investors should know:
1. Subscription Timeline
The IPO will open for public subscription on Monday, April 28, and close on Wednesday, April 30. Anchor investors can place their bids earlier on Friday, April 25.
2. Offer Structure and Size
The public issue comprises:
- A fresh issue of 8.18 crore equity shares worth approximately ₹2,626 crore
- An Offer for Sale (OFS) component of ₹354.76 crore
- The total issue size stands at ₹2,980.76 crore
3. Price Band
The company has set the price range between ₹304 to ₹321 per share, positioning it strategically to attract both institutional and retail investors.
4. Lot Size and Minimum Investment
Retail investors can apply for a minimum of one lot, which consists of 46 shares. At the upper price band, this translates to a minimum investment requirement of ₹13,984.
5. Fund Utilization
Proceeds from the fresh issue will be strategically deployed for:
- Capital expenditure towards establishing an electric two-wheeler manufacturing facility in Maharashtra
- Repayment of existing debt obligations
- Investment in research and development initiatives
- Marketing and brand-building activities
- General corporate purposes
6. Investor Reservation
The IPO has been structured with the following reservation:
- 75% of the offer reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Individual Investors (RIIs)
7. Key Dates
Important dates in the IPO calendar include:
- Basis of allotment finalization: May 2, 2025
- Listing date on NSE and BSE: May 6, 2025
8. Issue Managers
The public offering is being managed by a consortium of leading financial institutions:
- Axis Capital
- JM Financial
- Nomura Financial Advisory and Securities (India)
- HSBC Securities & Capital Markets
- MUFG Intime India (serving as the registrar)
About Ather Energy
Ather Energy is a pure-play electric vehicle company focusing exclusively on the electric two-wheeler segment. The company has established itself as a prominent player in India's burgeoning EV market with its comprehensive ecosystem approach that includes:
- Manufacturing of premium electric scooters
- Development of proprietary software solutions
- Charging infrastructure deployment
- EV accessories and related products
Market Context
Ather Energy becomes only the second electric two-wheeler manufacturer to go public in India, following Ola Electric Mobility's successful ₹6,145 crore IPO in August 2024. The listing comes at a time when the Indian EV market is experiencing rapid growth, driven by favorable government policies, increasing environmental awareness, and rising fuel prices.
Investment Perspective
For retail investors considering participation in this IPO, it represents an opportunity to gain exposure to India's electric mobility transition. However, potential investors should carefully evaluate the company's financial performance, growth trajectory, competitive positioning, and valuation metrics before making an investment decision.
As with any IPO investment, it's advisable to review the Red Herring Prospectus thoroughly and consider factors such as the company's path to profitability, market share, technological advantages, and long-term growth potential in the rapidly evolving electric vehicle landscape.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
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