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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AU Small Finance Bank Q4 Results: Net Profit Surges 18% to Rs 504 Crore on Strong NII Growth

AU Small Finance Bank has delivered an impressive financial performance for the fourth quarter of fiscal year 2025, with net profit jumping 18% year-on-year to reach Rs 504 crore. This robust growth, announced on Tuesday, marks a significant improvement from the Rs 371 crore reported in the same quarter of the previous fiscal year.

Key Financial Highlights

The bank's performance was driven by several positive factors, most notably a substantial improvement in its core income metrics:

• Net Interest Income (NII) surged by 57% year-on-year to reach Rs 2,094 crore, compared to Rs 1,337 crore in Q4 FY24
• Net Interest Margin (NIM) improved to 5.8%, up from 5.1% recorded in the corresponding quarter last year
• Other income registered a 41% increase to reach Rs 761 crore
• Pre-Provisioning Operating Profit (PPoP) nearly doubled to Rs 1,292 crore, compared to Rs 650 crore in the year-ago period

Asset Quality Improvement

The bank demonstrated positive momentum in managing its asset quality, with sequential improvement in key metrics:

• Gross Non-Performing Assets (GNPA) ratio improved to 2.28% at the end of March 2025, down from 2.31% reported at the end of December 2024
• Net NPA ratio showed more significant improvement, declining to 0.74% from 0.91% in the previous quarter

It is worth noting that when compared year-on-year, the GNPA ratio has increased from 1.67% at the end of March 2024, reflecting broader sectoral challenges that the bank has been navigating.

Business Growth and Portfolio Management

AU Small Finance Bank's loan book expanded impressively despite selective portfolio adjustments:

• Gross loan portfolio stood at Rs 1.16 lakh crore at the end of FY25, registering a solid 20% year-on-year growth
• Total deposits grew even faster at 27%, reaching Rs 1.24 lakh crore

In a strategic move reflecting prudent risk management, the bank's unsecured business portfolio contracted by 17.6% year-on-year. This reduction was primarily due to deliberate deleveraging of the microfinance business and implementation of corrective measures in the credit card segment, as stated by the bank.

Strategic Focus on Risk-Adjusted Growth

The bank's decision to scale back on unsecured lending while continuing to grow its overall loan book demonstrates a balanced approach to risk management in a challenging economic environment. This strategic pivot appears to be yielding results, as evidenced by the sequential improvement in asset quality metrics.

Market Implications

For investors monitoring the banking sector, AU Small Finance Bank's results offer several positive takeaways:

• The substantial improvement in NIM reflects effective interest rate management and optimal asset-liability strategies
• Strong deposit growth indicates robust customer confidence and provides a stable funding base for future expansion
• The proactive reduction in unsecured lending exposure demonstrates management's commitment to maintaining asset quality while navigating sectoral headwinds

The bank's ability to deliver 18% profit growth while simultaneously improving its risk profile positions it favorably among peers in the small finance banking segment.

Outlook for Retail Investors

For retail investors considering exposure to the banking sector, AU Small Finance Bank's performance highlights the potential of well-managed small finance banks to deliver attractive returns. The bank's focus on maintaining healthy interest margins while prudently managing credit risk offers a balanced growth proposition.

As the banking sector continues to adapt to evolving regulatory requirements and economic conditions, institutions demonstrating strong fundamentals and proactive risk management, as evidenced in AU Small Finance Bank's latest results, may warrant closer attention from investors seeking opportunities in the financial services space.

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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