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.
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.
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.
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.
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.
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.
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.
