Ather Energy IPO, the homegrown electric two-wheeler (E2W) manufacturer, is gearing up for its much-anticipated initial public offering (IPO) set to open on April 28, 2025. With a strong presence in India’s evolving EV landscape, Ather’s IPO is seen as a major milestone for both the company and the sector at large. Here’s a comprehensive look at everything investors need to know before subscribing.
📌 Ather Energy IPO Overview
The Ather Energy IPO is a book-built issue worth ₹2,980.76 crores. It comprises a fresh issue of 8.18 crore equity shares, aggregating to ₹2,626 crores, and an offer for sale (OFS) of 1.11 crore shares, amounting to ₹354.76 crores.
The IPO will open for subscription from April 28 to April 30, 2025, and the allotment is expected to be finalized by May 2, 2025. Shares will be listed on BSE and NSE on May 6, 2025.
The price band is set between ₹304 to ₹321 per share, with the minimum lot size of 46 shares, making the minimum retail investment ₹13,984. However, investors are advised to bid at the upper end (cut-off price) to increase allotment chances, pushing the investment to around ₹14,766.
| IPO Date | April 28, 2025 to April 30, 2025 |
|---|---|
| Listing Date | [.] |
| Face Value | ₹1 per share |
| Issue Price Band | ₹304 to ₹321 per share |
| Lot Size | 46 Shares |
| Total Issue Size | 9,28,58,599 shares |
| (aggregating up to ₹2,980.76 Cr) | |
| Fresh Issue | 8,18,06,853 shares |
| (aggregating up to ₹2,626.00 Cr) | |
| Offer for Sale | 1,10,51,746 shares of ₹1 |
| (aggregating up to ₹354.76 Cr) | |
| Employee Discount | 30.00 |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 29,06,43,469 shares |
| Share Holding Post Issue | 37,24,50,322 shares |
💹 Investment Categories
| Investor Category | Lot Size | No. of Shares | Investment Amount (₹) |
|---|---|---|---|
| Retail Investors | 1 lot | 46 shares | 13,984 – 14,766 |
| sNII | 14 lots | 644 shares | 2,06,724 |
| bNII | 68 lots | 3,128 shares | 10,04,088 |
| Ather Energy IPO Reservation | |
|---|---|
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Offer |
| Retail Shares Offered | Not more than 10% of the Net Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Net Offer |
🏦 Lead Managers & Registrar
The IPO is managed by a strong lineup of book-running lead managers:
- Axis Capital Limited
- HSBC Securities & Capital Markets Pvt Ltd
- JM Financial Limited
- Nomura Financial Advisory and Securities (India) Pvt Ltd
The registrar for this issue is Link Intime India Private Ltd.
📊 Financial Performance Snapshot
Despite being in a high-growth industry, Ather Energy is yet to turn profitable. Here’s a look at its recent financials:
Ather Energy Financials (₹ in Crores)
| Period Ended | Revenue | Profit After Tax | Assets | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31 Dec 2024 | 1,617.4 | -577.9 | 2,172 | 108 | 1,121.6 |
| 31 Mar 2024 | 1,789.1 | -1,059.7 | 1,913.5 | 545.9 | 314.9 |
| 31 Mar 2023 | 1,801.8 | -864.5 | 1,976.8 | 613.7 | 485.2 |
| 31 Mar 2022 | 413.8 | -344.1 | 818.6 | 224.9 | 298.4 |
📈 Financial Ratios Table
| Financial Metric | FY22 | FY23 | FY24 | Dec 2024 |
|---|---|---|---|---|
| Net Profit Margin (%) | -83.2 | -48.0 | -59.2 | -35.7 |
| Return on Net Worth (%) | -152.9 | -140.8 | -194.2 | -535.1 |
| Debt-to-Equity Ratio | 1.33 | 0.79 | 0.58 | 10.38 |
| Revenue Growth (%) | — | 335.3 | -0.7 | -9.6 |
Note: High debt and negative margins indicate the company is still in the expansion phase.
🎯 Objects of the Issue
The IPO proceeds will be used for multiple growth-oriented initiatives:
| Use of Proceeds | Expected Spend (₹ in Millions) |
|---|---|
| New EV manufacturing plant in Maharashtra | 9,272 |
| Loan repayment | 400 |
| Research & development investments | 7,500 |
| Marketing & branding initiatives | 3,000 |
| General corporate purposes | Remaining balance |
These steps indicate Ather’s strategic push to expand operations and boost brand visibility as competition heats up in India’s EV sector.
🔍 Key Takeaways for Investors
- Growth Phase: Ather is investing heavily in infrastructure and R&D, signaling future-focused growth.
- Financials: Still loss-making but improving revenue base.
- IPO Use: Focused on factory setup, R&D, debt repayment, and marketing.
- High Valuation: Premium pricing, yet could attract long-term investors bullish on EV space.
- Market Timing: EV sector tailwinds and favorable government policies support future potential.
❓Q&A: Everything You Need to Know
Q1: When will the Ather Energy IPO open and close?
A: The IPO opens on April 28, 2025, and closes on April 30, 2025.
Q2: What is the price band and minimum investment for retail investors?
A: The price band is ₹304-₹321, and the minimum investment at the cut-off price is around ₹14,766.
Q3: Is Ather Energy profitable?
A: No, the company is currently in a growth phase and has reported losses in recent years.
Q4: What will Ather use the IPO funds for?
A: The company will invest in setting up a factory in Maharashtra, repay debt, expand R&D, and boost marketing.
Q5: Is it a good time to invest in Ather’s IPO?
A: If you believe in the long-term growth of India’s electric mobility sector and can take higher risks, Ather’s IPO could be a strategic bet.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.