The initial public offering of electric vehicle pure play company Ather Energy Ltd. was subscribed 1.43 on day three of bidding. It was subscribed 16% on its first day on Monday, and 28% on its second day.
The grey market premium of Ather Energy IPO was Re 1 as of 6:00 p.m. on April 30, according to InvestorGain. This implies shares of the company will likely list at Rs 322 apiece, with a 0.31% gain over the IPO price.
The offer consists of both an issue of fresh shares worth Rs 2,626 crore, and an offer for sale worth Rs 354.8 crore. The price band has been set in the range of Rs 304 to Rs 321 per share. The market value at the upper end of the price band is Rs 11,955.7 crore.
The company aims to utilise Rs 927.2 crore towards capital expenditure for its Maharashtra E2W factory, alongside Rs 40 crore for repayment of borrowings, Rs 750 crore for investment in R&D and Rs 300 crore in expenditure towards marketing.
Ather Energy: IPO Details
Issue opens: April 28.
Issue closes: April 30.
Issue price: Rs 304-321.
Offer for sale: Rs 354.8 crore.
Fresh issue: Rs 2,626 crore.
Total issue size: Rs 2,980.7 crore.
Lot size: Minimum 46 shares, and then in multiples thereof.
Business
Ather Energy is a pure play Indian electric two-wheeler maker, and also provides associated product ecosystem, comprising software, charging infrastructure and smart accessories, all of which are conceptualised and designed by the company.
Apart from in-house battery packs, portable chargers and motors, other key E2W components, such as motor controllers, transmissions, vehicle control units, dashboards, DC-DC converters, harnesses, and chassis are designed in-house by the company and outsourced to suppliers for manufacturing.
The company sold 1.07 lakh and 1.09 lakh E2Ws in the nine months ended Dec. 31, 2024 and fiscal 2024, respectively.
Ather Energy IPO: Subscription Status Day 3
The IPO has been subscribed 1.43 times as of 7 p.m.
Qualified institutional buyers: 1.70 times.
Non-institutional investors: 0.66 times or 66%.
Retail investors: 1.78 times.
Portion reserved for employees: 5.43 times.
Ather Energy IPO GMP
The grey market premium of Ather Energy IPO was Re 1 as of 6:00 p.m. on April 30, according to InvestorGain. This implies shares of the company will likely list at Rs 322 apiece, with a 0.31% gain over the IPO price.
It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.
Ather Energy IPO: Key Risks
Other than the batteries manufactured in-house, the company relies on external suppliers for all other EV components used in assembling its electric two-wheelers. Any loss of key suppliers or disruptions in component supply could impact operations.
The company has incurred losses since its inception. In fiscal 2024, it recorded stagnant revenue growth, with a loss before tax of Rs 1,059.7 crore and Rs 577.9 crore in the nine months ended Dec. 31, 2024. There is no assurance of cost efficiency or future profitability.
The company's growth is dependent on the demand for and adoption of electric two-wheelers. Slower-than-expected market development could adversely affect its business and financial performance.
Sales are heavily concentrated in South India, exposing the company to heightened risks from natural disasters, regional instability, and regulatory changes in that region.
Financial Performance And Industry Peers
The company reported a 28.30% rise in revenue at Rs 1,578.9 crore in the first nine months of the financial year 2025, from Rs 1,230.4 crore in the same period of the previous fiscal. Net profit slipped 25.60% to Rs 577.9 crore. The company reported an Ebitda loss of Rs 408.5 crore in the same period.
As of Feb. 28, 2025, the company's debt pile stood at Rs 533.6 crore.
The EV player's listed peers include Hero MotoCorp Ltd., Bajaj Auto Ltd., Ola Electric Mobility Ltd., TVS Motor Co. and Eicher Motors Ltd. Here is how its performance stacks up against them:
Watch The IPO Adda Here
Also Read: Urban Company IPO: Home Services Platform Gets Shareholders' Approval For Rs 528 Crore Fresh Issue
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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