Ather Energy's Initial Public Offering (IPO) opened for subscription on April 28, 2025, and will close on April 30, 2025. This marks the first major main board IPO of fiscal year 2025-26.
IPO: The Initial Public Offering (IPO) of Ather Energy, a leading electric two-wheeler manufacturer, opened for investors today, April 28th. This presents investors with their first opportunity to invest in a new main board IPO in nearly two months. The IPO is generating significant excitement due to Ather Energy's b brand recognition and the rapidly growing demand in the electric mobility sector.
This report provides comprehensive information on the Ather Energy IPO, including the price band, subscription details, grey market premium (GMP), and the company's future plans.
Ather Energy IPO Details
The price band for Ather Energy's IPO is set at ₹304 to ₹321 per share, with a face value of ₹1 per share. Through this issue, the company aims to raise ₹2,626 crore via the sale of new equity shares, while promoters and existing shareholders will offer 1.1 crore shares through an Offer For Sale (OFS).
The company plans to utilize the funds raised through its IPO for several key objectives:
- ₹927.2 crore for establishing a new electric two-wheeler manufacturing plant in Maharashtra.
- ₹40 crore for debt repayment.
- ₹750 crore for research and development (R&D).
- ₹300 crore for brand marketing and promotion.
- The company aims to complete these investments between fiscal years 2026 and 2028.
Special Discount for Employees
Ather Energy has reserved 100,000 equity shares specifically for its employees. These shares will be offered at a special discount of ₹30 per share. This demonstrates the company's commitment to employee ownership.
Listing and Allotment Dates
- IPO Opening Date: April 28, 2025
- IPO Closing Date: April 30, 2025
- Expected Share Allotment Date: May 2, 2025
- Refund Date: May 5, 2025
- Credit of Shares to Demat Account: May 5, 2025
- Listing Date on Stock Exchanges: May 6, 2025
Ather Energy shares will be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Grey Market Activity and GMP
Ather Energy shares are currently trading at a premium of ₹3 in the grey market. Assuming the upper price band of ₹321, the estimated listing price could be ₹324. While this premium isn't exceptionally high, it reflects a positive market sentiment. Retail investors must apply for at least one lot, comprising 46 shares, requiring an investment of approximately ₹14,766. Retail investors can apply for a maximum of 13 lots.
IPO Management
Axis Capital Limited, HSBC Securities and Capital Markets India Private Limited, JM Financial Limited, and Nomura Financial Advisory and Securities India Private Limited have been appointed as the book running lead managers for this IPO. Link Intime India Private Limited is acting as the registrar for this issue.
About the Company
Ather Energy is a rapidly emerging company in India's electric vehicle sector. The company is particularly known for its high-performance electric scooters, the 'Ather 450X' and 'Ather 450S'. Ather has also developed a nationwide charging infrastructure (Ather Grid), further facilitating the use of its vehicles.
Over the past few years, Ather Energy has consistently strengthened its business model and built a b reputation among customers. Given the growing trend of electric mobility, the market holds positive expectations for Ather Energy's future.
