Ather Energy's IPO Opens April 28th: Investment Opportunity at ₹304-321 Price Band. The IPO size is ₹2,980.76 Crore. Should you invest? Find out!
Ather Energy IPO: Electric scooter manufacturer, Ather Energy, is poised to enter the stock market. The company's IPO will open on April 28th, 2025, and investors can participate until April 30th. Investor enthusiasm is high, with a price band of ₹304-321 per share set.
IPO Size and Details
Ather Energy's IPO is valued at ₹2,980.76 crore, divided into two parts. One part, amounting to ₹2,626 crore, involves the issuance of 8.18 crore new shares by the company. The other part, contributing ₹354.76 crore, comes from the sale of 1.11 crore shares by existing investors.
IPO Price Band and Lot Size
The company has set a price band of ₹304-321 per share. A single lot comprises 46 shares, requiring a minimum investment of ₹14,766 for retail investors. Retail investors can apply for a maximum of 13 lots, totaling 598 shares.
Positive Response in the Grey Market
Even before the IPO opening, the company's shares are trading positively in the grey market. On April 25th, they were priced around ₹321, slightly above the upper end of the company's price band. This could be a positive sign for investors.
Ather Energy's Financial Position and Investor Advice
However, Ather Energy has been operating at a loss, resulting in a negative price-to-earnings (PE) ratio. Furthermore, the company's debt exceeded ₹1121 crore as of December 31st, 2024, a concerning factor. Nevertheless, brokerage firms like Bajaj Broking recommend subscribing to this IPO for long-term investment.
The company is establishing a new plant in Maharashtra to expand its production capacity, potentially leading to future profits.
Should You Invest in the Ather Energy IPO?
If you are a long-term investor with surplus funds, the Ather Energy IPO might present a good opportunity. However, considering its financial position, it's crucial to assess your risk tolerance and investment situation before making a decision.
