Ather Energy IPO
The headline act of the week is undoubtedly Ather Energy IPO, marking the first mainboard IPO in over two months. The Bangalore-based electric vehicle maker, backed by Hero MotoCorp, is set to hit Dalal Street with a massive Rs 2,981-crore public issue. The IPO will open for subscription on April 28, 2025, and close on April 30, 2025, with a price band set at Rs 304-321 per share.
Ather Energy has already garnered significant interest, raising Rs 1,340 crore from institutional investors through its anchor book on April 25. The IPO comprises a fresh issue of 8.18 crore equity shares worth Rs 2,626 crore and an offer for sale (OFS) of Rs 354.76 crore. The company plans to utilize the proceeds for multiple growth initiatives, including:
- Establishing a new E2W (electric two-wheeler) factory in Maharashtra (Rs 927.2 crore).
- Investment in research and development (Rs 750 crore).
- Marketing initiatives (Rs 300 crore).
- Repayment of borrowings (Rs 378.2 crore).
Ather Energy, a key player in India’s booming EV market, competes with the likes of Ola Electric, TVS Motor, and Bajaj Auto. Despite reporting a loss before taxes of Rs 1,059.7 crore in FY24, the company has shown robust growth, with revenue surging 329% since FY22 and gross margins doubling year-on-year. Posts on X reflect optimism about Ather’s operational metrics, with some users noting its attractive price-to-sales (P/S) multiple of 5.3x FY25E, improving to 2.9x FY26P, compared to peers like Bajaj (3.5x) and TVS (2.8x). However, challenges like supplier risks and low capacity utilization remain concerns for investors.
With a lot size of 46 shares, retail investors will need a minimum of Rs 14,766 to bid for one lot. The allotment is expected on May 2, with the listing scheduled for May 6, 2025, on both BSE and NSE. Ather Energy’s IPO is poised to set a benchmark for future EV-related listings in India, making it a must-watch for investors.
SME Segment Heats Up with Four New IPOs
While Ather Energy steals the spotlight in the mainboard segment, the SME segment is equally vibrant with four IPOs opening for subscription next week. These offerings cater to diverse industries, from logistics to specialty chemicals, jewelry, and skill development. Here’s a detailed look at each:
1. Iware Supplychain Services IPO: Logistics Player Enters the Fray
Iware Supplychain Services, a pan-India logistics company, will be the first SME IPO to open next week. The company aims to raise Rs 27.13 crore through a fixed-price issue of 28.56 lakh shares priced at Rs 95 per share. The IPO will be open for subscription from April 28 to April 30, 2025.
Iware operates in warehousing (including third-party logistics), transportation, rake handling services, and more. The IPO is managed by GetFive Advisors Private Limited, with Kfin Technologies Limited as the registrar and SMC Global Securities as the market maker. Retail investors need to apply for a minimum of 1,200 shares, requiring an investment of Rs 1,14,000. The allotment is expected on May 2, with the listing on NSE SME tentatively set for May 6.
2. Kenrik Industries IPO: Smallest Issue with Big Aspirations
Next in line is Kenrik Industries, a company specializing in traditional Indian jewelry, including handmade gold pieces adorned with precious and semi-precious stones. The SME IPO, which is the smallest of the lot, aims to raise Rs 8.75 crore through a fresh issue of 34.98 lakh shares priced at Rs 25 per share. The IPO will open on April 29, 2025, and close on May 6, 2025, giving investors a longer window to participate.
Managed by Turnaround Corporate Advisors Private Limited, with Skyline Financial Services as the registrar and MNM Stock Broking as the market maker, the IPO requires a minimum investment of Rs 1,50,000 (6,000 shares) for retail investors. The funds will be used for working capital requirements and general corporate purposes. The allotment is expected on May 7, with the listing on BSE SME scheduled for May 9, 2025.
3. Arunaya Organics IPO: Specialty Dyes Maker Targets Growth
Arunaya Organics, a manufacturer and exporter of specialty dyes and intermediates, will also open its IPO on April 29, 2025, closing on May 2, 2025. The company aims to raise Rs 33.99 crore through a book-built issue, comprising a fresh issue of 52.60 lakh shares (Rs 30.51 crore) and an OFS of 6 lakh shares (Rs 3.48 crore). The price band is set at Rs 55-58 per share.
Based in Ahmedabad, Gujarat, Arunaya Organics serves both domestic and international markets, offering products like reactive, acid, direct, basic, and solvent dyes, primarily for the textile and paper industries. The company plans to establish a new manufacturing facility in Bharuch, Gujarat, to boost its production capacity. Unistone Capital Pvt Ltd is the book-running lead manager, with Bigshare Services Pvt Ltd as the registrar and R.K. Stock Holding Private Limited as the market maker. Retail investors need Rs 1,10,000 (2,000 shares) to apply for one lot. The listing is expected on NSE SME on May 7.
4. Wagons Learning IPO: Skill Development Solutions in Focus
The last SME IPO of the week comes from Wagons Learning, a corporate training, digital learning, and skill development solutions provider. The IPO will open on May 2, 2025, and close on May 6, 2025, aiming to raise Rs 38.4 crore. The price band is set at Rs 78-82 per share, with the issue comprising a fresh issue of 30.80 lakh shares (Rs 25.26 crore) and an OFS of 16 lakh shares (Rs 13.12 crore).
Managed by Khandwala Securities Limited, with Cameo Corporate Services Limited as the registrar and Rikhav Securities Limited as the market maker, the IPO is expected to see strong interest given the growing demand for skill development solutions in India. The listing date on NSE SME is yet to be confirmed but is likely around mid-May.
Tankup Engineers Listing: A Stellar Debut on the Horizon
Amid the flurry of IPO openings, investors will also witness a listing next week. Tankup Engineers, an Uttar Pradesh-based company, will make its market debut on the NSE Emerge platform on April 30, 2025. The IPO, which closed for subscription on April 25, saw an overwhelming response, being subscribed 125 times—a testament to strong investor confidence in the SME segment.
Tankup Engineers raised Rs 19.53 crore through a fresh issue of 13.95 lakh shares priced at Rs 133-140 per share. The funds will be used for debt repayment and working capital requirements. With such a robust subscription, the listing is expected to deliver healthy gains for allottees, making it a key event to watch this week.
Primary Market Outlook: A Revival in Investor Sentiment
The Indian primary market has been relatively quiet in recent months, with IPO volumes dropping 41% and values plummeting 77% in Q1 2025, as per a report by Grant Thornton Bharat. Only 16 IPOs raised USD 2.6 billion in the first quarter—the second-lowest quarterly volume in seven quarters. However, this week’s lineup signals a revival, with companies looking to capitalize on improving investor sentiment.
The SME segment, in particular, has been a bright spot, with companies like Tankup Engineers demonstrating the potential for significant listing gains. Meanwhile, Ather Energy’s mainboard IPO could set the tone for larger EV players eyeing the public markets, especially after Ola Electric’s listing last year. Investors are advised to carefully evaluate each IPO, considering factors like business fundamentals, competitive landscape, and grey market premiums (GMP), which are trending for all five IPOs, as noted on platforms like InvestorGain.
Why This Week Matters for Investors
This week’s primary market action offers a diverse range of investment opportunities, from the high-growth EV sector with Ather Energy to niche SME players like Arunaya Organics and Wagons Learning. Here’s why investors should pay attention:
- Diverse Sectors: The IPOs span multiple industries—EV, logistics, jewelry, specialty chemicals, and skill development—allowing investors to diversify their portfolios.
- High Subscription Potential: Tankup Engineers’ 125x subscription highlights the strong demand for SME IPOs, which often deliver attractive listing gains.
- EV Market Growth: Ather Energy’s IPO taps into India’s rapidly growing electric two-wheeler market, projected to see exponential growth in the coming years.
- Affordable Entry Points: SME IPOs like Kenrik Industries (Rs 25/share) and Arunaya Organics (Rs 55-58/share) offer retail investors affordable entry points into emerging businesses.
Conclusion: Don’t Miss the Primary Market Action!
The primary market is back with a bang, and this week promises to be a game-changer for investors. Whether you’re eyeing the growth potential of Ather Energy in the mainboard segment or the high-return prospects of SME IPOs like Iware Supplychain Services, Kenrik Industries, Arunaya Organics, and Wagons Learning, there’s something for everyone. Plus, the much-anticipated listing of Tankup Engineers on April 30 could set the tone for the SME segment’s performance in the coming months.
Stay tuned for more updates on IPO subscriptions, allotments, and listing performances. For the latest IPO news, reviews, and GMP trends, keep checking back with us!
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