Ather Energy IPO Allotment Status
Ather Energy, a prominent electric two-wheeler manufacturer in India, successfully concluded its Initial Public Offering (IPO) on April 30, 2025. The IPO was met with strong investor interest, particularly from institutional buyers, leading to full subscription on the final day of bidding. The funds raised will be primarily used to expand manufacturing capacity, invest in research and development, and reduce existing debt. This successful IPO marks a significant milestone for Ather Energy’s growth and strengthens its position in the rapidly evolving electric vehicle market.
IPO Allotment and Listing Details
- Allotment Date: May 2, 2025
- Refund Initiation: May 5, 2025
- Credit of Shares to Demat Accounts: May 5, 2025
- Listing Date: May 6, 2025
- Stock Exchanges: BSE and NSE
Investors can check their allotment status through the registrar, Link Intime India, or via the BSE and NSE websites. The IPO was priced between ₹304 and ₹321 per share, with a lot size of 46 shares, requiring a minimum investment of ₹13,984. The allotment status is typically updated within a week after the IPO closes, enabling investors to quickly confirm their share allocation. Additionally, investors can also track the status through their trading or demat account platforms for real-time updates.
IPO Structure and Objectives
The IPO comprised a fresh issue of ₹2,626 crore and an offer-for-sale (OFS) component of ₹354.76 crore, totaling ₹2,980.76 crore. The fresh capital is earmarked for:
- Manufacturing Expansion: ₹927.2 crore to establish “Factory 3.0” in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra.
- Research and Development: ₹750 crore over five years to enhance product innovation.
- Debt Repayment: ₹378.2 crore to reduce existing borrowings.
- Marketing Initiatives: ₹300 crore to strengthen brand presence.
- General Corporate Purposes: Remaining funds to support overall business operations.
This well-structured IPO aims to fuel Ather Energy’s growth by significantly boosting production capacity and accelerating technological advancements. The focus on debt reduction and marketing also highlights the company’s commitment to financial stability and expanding its market reach. These strategic investments are expected to solidify Ather Energy’s position as a leader in India’s electric vehicle sector.
Investor Participation
The IPO witnessed significant interest from Qualified Institutional Buyers (QIBs), who subscribed to 1.3 times their allotted shares. Retail investors also showed strong participation, subscribing to 1.45 times their allocated portion. This high level of investor engagement reflects strong confidence in Ather Energy’s growth prospects and business model. The robust subscription from both institutional and retail segments underscores the market’s positive outlook on the electric vehicle industry in India. Additionally, strong demand across investor categories helped ensure the IPO was fully subscribed well before the closing date, highlighting broad-based support for the company’s future plans.
Strategic Developments
In preparation for the IPO, Ather Energy converted over 1.73 crore Compulsory Convertible Preference Shares (CCPS) into 24.04 crore equity shares, aligning with SEBI regulations. This move was crucial for the company’s transition to a publicly listed entity. By completing this conversion, Ather Energy streamlined its capital structure, making it more transparent and attractive to potential investors. This strategic step also helped enhance liquidity and set a strong foundation for future fundraising and market performance as a public company.
Financial Performance
For the fiscal year 2023-24, Ather Energy reported:
- Revenue: ₹1,753.8 crore
- Net Loss: ₹1,059.7 crore
The company continues to invest heavily in R&D and infrastructure to enhance its market position.
Market Position
Ather Energy holds a 12% share in India’s electric two-wheeler market, competing with players like Ola Electric and TVS Motor. The company’s focus on premium products and in-house component design sets it apart in the competitive landscape. Its strong emphasis on technology innovation, including smart connected features and fast-charging infrastructure, further enhances its appeal among urban consumers. As the Indian EV market grows rapidly, Ather’s commitment to quality and customer experience positions it well for sustained market leadership and expansion.
Conclusion
Ather Energy’s successful IPO marks a significant milestone in its growth trajectory. The funds raised will support the company’s expansion plans, including the establishment of a new manufacturing facility and increased investment in R&D. Investors and market watchers will be keenly observing Ather’s performance post-listing, scheduled for May 6, 2025.
