After more than two months, the primary market will witness opening of new initial public offering (IPO) in the mainboard segment. Ather Energy IPO will open for subscription on Monday, April 28 and will close on Wednesday, April 30.
Ather Energy is a specialised electric vehicle manufacturer that builds electric two-wheelers (E2Ws) and offers a complete ecosystem of products, including its own software, charging infrastructure, and smart accessories, all created and developed in India.
Ather Energy IPO details
Ather Energy IPO price band has been fixed at ₹304 to ₹321 per equity share of face value of Re 1. The upcoming IPO includes a fresh equity share issuance worth₹2,626 crore, along with an offer-for-sale (OFS) of 1.1 crore equity shares by the promoters and other existing shareholders.
The company plans to use ₹927.2 crore from its total IPO proceeds to establish an electric two-wheeler manufacturing facility in Maharashtra, allocate ₹40 crore towards debt repayment, invest ₹750 crore in research and development, and dedicate ₹300 crore to marketing efforts. These funds are expected to be utilized over the fiscal years 2026 to 2028.
The IPO has allocated at least 75% of the shares to qualified institutional buyers (QIBs), no more than 15% to non-institutional investors (NIIs), and up to 10% for retail investors. Additionally, up to 100,000 equity shares have been set aside for employees, who will receive a ₹30 discount per share.
The preliminary share allotment for the Ather Energy IPO is scheduled for Friday, May 2, with refunds to be processed by the company on Monday, May 5. Shares will be credited to the allottees' demat accounts on the same day as the refunds. Ather Energy's shares are expected to be listed on the BSE and NSE on Tuesday, May 6.
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are serving as the book-running lead managers for Ather's IPO. Link Intime India Private Ltd is acting as the registrar for the issue.
Ather Energy IPO GMP
The shares of Ather Energy IPO is trading at a premium of ₹3 in the unlisted grey market, as per investorgain.
Based on the upper end of the IPO price band and the prevailing grey market premium, Ather Energy's estimated listing price is projected at ₹324 per share, reflecting a 0.93% increase over the IPO price of ₹321.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Should you subscribe?
Brokerage firm Bajaj Broking has assigned 'subscribe for long-term' saying that over the last three fiscals, the company's average Earnings Per Share (EPS) stood at ( ₹44.00) while its average Return on Net Worth (RoNW) was (-170.00)%.
"Considering its current financials, this appears to be a long-term investment story, and therefore, only well-informed investors with surplus funds and a long-term perspective may consider investing moderately," the brokerage firm said in report.
