Ather Energy Limited, a pioneer in the electric two-wheeler (E2W) segment in India, is coming out with its Initial Public Offering (IPO). Known for its innovative products and fully indigenous designs, Ather sells electric scooters along with associated software, charging infrastructure, and smart accessories—all made in India.

The Ather Energy IPO will open on April 28, 2025, and close on April 30, 2025. It is a Book Built Issue amounting to ₹2,980.76 Crores, comprising:

• Fresh Issue: 818.06 lakh shares aggregating ₹2,626.00 crores

• Offer for Sale (OFS): 110.51 lakh shares aggregating ₹354.76 crores

The price band has been fixed at ₹304 to ₹321 per equity share, with a lot size of 46 shares. Retail investors need a minimum investment of ₹14,766, while HNIs must invest in 14 lots (₹2,06,724).

Listing and Allotment

The basis of allotment is expected to be finalized on May 2, 2025 (Friday). The shares will tentatively be listed on BSE and NSE on May 6, 2025 (Tuesday).

Market Capitalisation and Promoters

At the upper band of ₹321, market capitalization of the company is estimated at ₹11,955 crores. The company is promoted by Tarun Sanjay Mehta and Swapnil Babanlal Jain, both having over a decade of experience in the EV space.

Book Running Lead Managers and Registrar

The BRLMs for the IPO are:

• Axis Capital Limited

• HSBC Securities and Capital Markets (India) Pvt Ltd

• JM Financial Limited

• Nomura Financial Advisory and Securities (India) Pvt Ltd

The Registrar is MUFG Intime India Private Limited (formerly Link Intime India Private Limited).

Ather Energy IPO GMP Today

The Grey Market Premium (GMP) for Ather Energy IPO is currently ₹0, indicating no speculative premium in the grey market. GMP depends on demand and supply in the unofficial market and is not a reliable indicator of listing gains.

Subscription Status

The live subscription data will be available from April 28, 2025, on the exchanges.

Ather Energy IPO GMP Trend

How to Check IPO Allotment Status

You can check Ather Energy IPO allotment status by following these steps:

1. Visit the registrar's allotment page.

2. Select Ather Energy Limited IPO from the dropdown.

3. Enter your Application Number, PAN, or DP/Client ID.

4. Click on Submit to check your allotment.

Use of IPO Proceeds

The company plans to utilise the net proceeds for:

1. ₹927.20 crore for setting up an E2W manufacturing facility in Maharashtra

2. ₹40.00 crore for repayment of certain borrowings

3. ₹750.00 crore for R&D investments

4. ₹300.00 crore for marketing initiatives

5. Balance for general corporate purposes

Financial Performance

The company continues to post heavy losses despite growing revenue, indicating negative profitability.

Valuation and Ratios

• Pre-Issue EPS (FY24): ₹-47.00

• Post-Issue EPS (FY24): ₹-28.45

• Pre-Issue P/E Ratio: -6.83x

• Post-Issue P/E Ratio: -11.28x

• Industry P/E: 39x

• ROCE FY24: -118.69%

• ROE FY24: -1.83%

• RoNW FY24: -194.00%

• Annualised EPS: ₹-30.66

• PE Ratio (Annualised): -10.46x

These ratios suggest the IPO is fully priced and not suitable for conservative investors.

Ather Energy IPO Review: Avoid

Due to the negative earnings, high valuation, and absence of listing gains, we recommend investors to avoid the IPO both for listing and long-term investment. Although the company is a leader in the E2W sector, it needs to demonstrate consistent profitability before becoming investment-worthy.

Disclaimer: This article is for educational purposes only and should not be construed as financial advice. IPO investments are subject to market risks. Please consult a registered investment advisor before making any investment decision. This content is based on public information available at the time of writing.

About the Author

CA Abhay Kumar (aka CA Abhay Varn) is a SEBI Registered Research Analyst (INH300008465) and a Chartered Accountant by profession. He has over 8 years of experience in the Indian stock markets and is the founder of abhayvarn.com, a platform for retail investor awareness and financial education.

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