What's covered under the Article:

The Ather Energy IPO has gained significant attention as the company prepares to list on the BSE and NSE. The IPO, valued at ₹2,980.76 Crores, includes a fresh issue of 818.06 Lakh shares worth ₹2,626.00 Crores and an Offer for Sale (OFS) of 110.51 Lakh shares, totaling ₹354.76 Crores. The subscription period for the Ather Energy IPO opens on April 28, 2025, and closes on April 30, 2025. The allotment date is scheduled for May 2, 2025, with shares expected to list on the stock exchanges around May 6, 2025.

Price Band and Lot Size: The price band for the Ather Energy IPO has been set between ₹304 and ₹321 per equity share. Based on the upper price band of ₹321, the market capitalization of Ather Energy Limited at the time of listing would be approximately ₹11,955 Crores. The lot size for this IPO is 46 shares, with the retail investor minimum investment amounting to ₹14,766. High-Net-Worth Individuals (HNIs) are required to invest in a minimum of 14 lots (644 shares), which equals ₹2,06,724.

IPO Subscription Status: As of April 28, 2025, by 03:30 PM, the IPO had been subscribed 0.14 times on its first day of subscription. This shows initial investor interest, although the subscription figures can fluctuate until the final day.

Grey Market Premium (GMP): The Grey Market Premium (GMP) for Ather Energy IPO is currently ₹0, indicating that no significant trading is happening in the grey market at present. It’s important to note that the GMP reflects informal price discovery and is often not an accurate representation of the stock's actual listing price. Investors should be cautious, as GMP is primarily driven by demand and supply in the unregulated grey market, which does not directly influence the official listing price.

Anchor Investors: The company has raised ₹1,340.03 Crores from Anchor Investors at the upper price of ₹321 per share. A total of 4,17,45,576 equity shares were allocated to these investors, indicating strong initial support for the issue. This allocation is part of the Qualified Institutional Buyers (QIBs) portion of the IPO.

Ather Energy IPO Objectives: Ather Energy plans to use the proceeds from the IPO for various purposes:

1. ₹9,272 Million for capital expenditure to set up a new electric two-wheeler factory in Maharashtra.

2. ₹400 Million for repayment of borrowings.

3. ₹7,500 Million for research and development initiatives.

4. ₹3,000 Million for marketing and brand-building activities.

5. General corporate purposes.

Financial Performance: Ather Energy's financials show significant losses, with a negative Profit After Tax (PAT) for the fiscal years 2022-2024. The company reported negative EBITDA over the past three years, indicating that it is yet to achieve profitability. The pre-issue EPS is reported at ₹-47.00, with a post-issue EPS of ₹-28.45, suggesting limited potential for near-term profitability.

The Price-to-Earnings (P/E) ratio based on pre-issue numbers is negative (-6.83x), while the post-issue P/E ratio is -11.28x. This is far below the industry P/E ratio of 39x, which reflects the market's cautious view of the company's ability to deliver returns in the near future. The Return on Equity (ROE) for FY24 is -1.83%, and Return on Net Worth (RoNW) is -194.00%, signaling weak financial performance and high investor risk.

Investment Recommendation: Considering the negative financial performance, GMP, and valuation concerns, the Ather Energy IPO appears to be priced at a premium without adequate profitability support. Retail investors and HNIs should carefully assess their risk tolerance before investing, especially if they are seeking listing gains or long-term growth. Based on the current financials and market conditions, this IPO may not be the best choice for investors looking for immediate returns.

Investors are advised to exercise caution and consider the long-term potential of Ather Energy in the electric vehicle sector before committing capital.

The Upcoming IPOs in this week and coming weeks are Arunaya Organics,Kenrik Industries,Wagons Learning,Srigee DLM.

The Current active IPO are Ather Energy, Iware Supplychain Services.

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