Ather Energy, a leader in the Indian electric two-wheeler (E2W) market, is set to launch its Initial Public Offering (IPO) to raise ₹2,980.76 Crores. The IPO consists of a fresh issue of 818.06 Lakh shares worth ₹2,626.00 Crores and an offer for sale of 110.51 Lakh shares totaling ₹354.76 Crores. The subscription period opens on April 28, 2025, and closes on April 30, 2025, with the allotment date expected to be finalized on May 2, 2025. The shares will be listed on the BSE and NSE on May 6, 2025.

Ather Energy IPO Key Details:

• IPO Price Band: ₹304 to ₹321 per share.

• Market Capitalization: ₹11,955 Crores (at ₹321 per share).

• Lot Size: 46 shares. Retail investors can invest a minimum of ₹14,766, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,06,724 for 14 lots (644 shares).

• Book Running Lead Managers: Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory.

• Registrar: MUFG Intime India Private Limited (formerly Link Intime India Private Limited).

Grey Market Premium (GMP):
As of today, the Grey Market Premium (GMP) for Ather Energy IPO is ₹0, indicating no significant trading activity or listing premium expected. This is reflective of the current financial performance of the company, and there is no reliable price discovery before the listing on the stock exchanges.

Ather Energy IPO Subscription Status:
The IPO has been subscribed 1.43 times as of 7:00 PM on April 30, 2025, marking a moderate demand on the final day of the subscription period.

Anchor Investors:
Ather Energy has raised ₹1,340.03 Crores from Anchor Investors, with the allocation of 4,17,45,576 equity shares at ₹321 each. This indicates strong interest from institutional investors.

Ather Energy IPO Objectives:
The IPO's net proceeds will be utilized for the following purposes:

1. Capital Expenditure: ₹9,272.00 Million for establishing an electric two-wheeler factory in Maharashtra.

2. Debt Repayment: ₹400.00 Million for the repayment of borrowings.

3. Research & Development: ₹7,500.00 Million for further investment in R&D for EV technology.

4. Marketing Initiatives: ₹3,000.00 Million for strategic marketing efforts.

5. General Corporate Purposes: Funds will also be used for other general corporate requirements.

Ather Energy IPO Financial Performance:
For the fiscal year 2024, Ather Energy reported revenues of ₹16,174.00 Million, showing growth despite its EBITDA and Profit After Tax (PAT) remaining negative. The company's continued focus on expanding its manufacturing capacity and R&D for electric vehicles is a part of its long-term strategy.

Ather Energy IPO Review:
Despite the company's innovation in the electric vehicle market, the Ather Energy IPO is priced at a negative P/E ratio, indicating the stock is highly valued based on its current financial performance. With an EPS of ₹-47 pre-issue and ₹-28.45 post-issue for FY24, along with a low market interest reflected in the GMP, the IPO may not offer immediate listing gains.

Given the current financials and absence of strong listing expectations, potential investors are advised to exercise caution and avoid the Ather Energy IPO for both listing gains and long-term investments. The company's heavy reliance on future growth initiatives such as factory establishment and R&D may lead to a long-term payback, but the IPO might not yield quick returns.

Conclusion:
The Ather Energy IPO reflects the company’s strong presence in the Indian electric two-wheeler market. However, given the negative financial performance and the lack of substantial Grey Market Premium (GMP), potential investors should carefully evaluate their investment choices. The IPO appears to be fully priced with no immediate upside predicted, making it more suitable for those with a long-term investment horizon in the electric vehicle sector.

The Upcoming IPOs in this week and coming weeks are Srigee DLM, Manoj Jewellers.

The Current active IPO are Wagons Learning, Kenrik Industries, Arunaya Organics.

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