What's covered under the Article:

Ather Energy is a well-established player in the Indian electric two-wheeler (E2W) market, offering a wide range of electric vehicles (EVs) and associated products, such as software, charging infrastructure, and smart accessories, all conceptualized and designed in India. As a pure-play electric vehicle company, Ather Energy is committed to pioneering sustainable transportation solutions in India.

The Ather Energy IPO, a Book Built Issue amounting to ₹ 2,980.76 Crores, consists of 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 this IPO begins on April 28, 2025, and ends on April 30, 2025. The allotment process is expected to be finalized by May 02, 2025, with the listing date scheduled for May 06, 2025, on the BSE and NSE.

The price band for the IPO is set at ₹ 304 to ₹ 321 per equity share, and with the upper price band of ₹ 321, the company's market capitalization will be ₹ 11,955 Crores. The lot size for the IPO is 46 shares, requiring a minimum investment of ₹ 14,766 for retail investors. High-Net-Worth Individuals (HNIs) must invest in at least 14 lots (644 shares), which amounts to ₹ 2,06,724.

Several prominent book-running lead managers are handling the IPO, including Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Private Limited. The registrar for the issue is MUFG Intime India Private Limited (formerly Link Intime India Private Limited).

Ather Energy IPO Grey Market Premium (GMP) Today:

As of the latest update, the Grey Market Premium (GMP) for Ather Energy is ₹ 0, indicating no anticipated listing gains. This reflects the lack of active trading and price discovery in the Grey Market, which is driven by supply and demand dynamics outside formal stock exchanges. It is important to note that relying on GMP is speculative and not recommended for making investment decisions.

Ather Energy IPO Subscription Status:

As of 11:00 AM on April 29, 2025, the Ather Energy IPO was subscribed 0.21 times on the second day of its subscription period. This real-time update provides insights into investor interest in the IPO, which will continue to evolve as the subscription period progresses.

Ather Energy IPO Anchor Investors Report:

Ather Energy has successfully raised ₹ 1,340.03 Crores from Anchor Investors at the upper price band of ₹ 321 per share. The company allocated 4,17,45,576 equity shares to these investors, further solidifying confidence in the IPO. It is important to note that these shares are allocated from the Qualified Institutional Buyers (QIBs) reservation portion.

Ather Energy IPO Allotment Date:

The IPO allotment date is set for May 02, 2025. Investors can check their allotment status by visiting the registrar’s website and entering relevant details such as the application number, PAN, or DP Client ID. This allows applicants to track whether they have successfully secured shares in the offering.

Use of Proceeds:

Ather Energy plans to utilize the net proceeds from the IPO for various key purposes, including:

1. ₹ 9,272 Million for capital expenditure aimed at setting up a new E2W factory in Maharashtra.

2. ₹ 400 Million for repayment/pre-payment of existing borrowings.

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

4. ₹ 3,000 Million for marketing and promotional activities.

5. The remainder will be used for general corporate purposes.

Ather Energy IPO Financial Performance and Review:

Ather Energy's financial performance has shown a consistent growth trajectory despite challenges. For the fiscal year 2024, the company recorded revenue from operations of ₹ 16,174 Million, though it posted a negative EBITDA of ₹ -3,700 Million. The company has also incurred net losses, with the profit after tax standing at ₹ -5,779 Million for the year ending December 31, 2024.

The pre-issue Earnings Per Share (EPS) stands at ₹ -47.00, with a post-issue EPS of ₹ -28.45, reflecting the company's ongoing efforts to scale its operations. The pre-issue Price-to-Earnings (P/E) ratio is -6.83x, and the post-issue P/E ratio is -11.28x, compared to the industry average of 39x. These figures suggest that Ather Energy is priced aggressively, but its financial metrics show a clear path to future profitability and growth.

Conclusion and IPO Recommendation:

Given the financial performance and valuation metrics, the Ather Energy IPO is fully priced. With the current Grey Market Premium of ₹ 0 and the company's lack of profitability in recent years, investors may want to approach this IPO with caution. Experts recommend avoiding the IPO if you are looking for short-term listing gains or long-term investment opportunities, as the company has not yet shown strong evidence of sustained profitability.

In summary, the Ather Energy IPO offers a promising future in the electric vehicle market but presents significant risks due to its financial losses and valuation. Investors should carefully assess their risk appetite before subscribing to the offering.

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

The Current active IPO are Kenrik Industries,Arunaya Organics, Ather Energy, Iware Supplychain Services.

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