Ather Energy, one of India’s leading electric two-wheeler manufacturers, announced that the company will be open to IPO (initial public offering) from today, 28th April, to Wednesday, 30th April.
The soon-to-be-public Ather Energy manufactures electric two-wheelers (E2Ws). It provides a wide range of products, including its proprietary software, charging infrastructure, and smart accessories, all designed and developed in India.
Ather Energy’s IPO details
The Ather Energy initial public offering (IPO) pricing range is Rs. 304 to Rs. 321 per equity share with a face value of Re 1. In addition to an offer-for-sale (OFS) of Rs. 1.1 crore equity shares by the promoters and other current shareholders, the IPO will also issue new equity shares valued at Rs. 2,626 crore.
Ather Energy revealed the company’s future plans and said that Rs. 927.2 crore from the IPOs would be used to build an electric two-wheeler manufacturing plant in Maharashtra. The company also plans to pay off Rs. 40 crore in debt, invest Rs. 750 crore in R&D, and spend Rs. 300 crore on marketing. Implementation of these plans will last from FY 2026-2028.
Qualified institutional buyers (QIBs) will receive at least 75% of the shares from the IPO, institutional investors will receive 15%, and retail investors will receive 10%. Ather’s employees will receive a discount of Rs. 30 per share for the 100,000 equity shares reserved.
Ather Energy stated that the IPO’s preliminary share allocation will take place on 2nd May and that refunds will be processed on Monday, 5th May; shares will be credited to the demat accounts of the allottees on 5th May as well. Ather Energy’s shares are anticipated to go public on the BSE and NSE from 6th May.
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) will run the books, while Link Intime India Private Ltd will register the issue.
Ather Energy IPO GMP
GMP, Grey Market Premium, indicates the extra money investors are ready to pay before the IPO shares are officially listed on the stock exchange. Positive GMP hints that investors are prepared to pay more than the IPO price because they expect the stock to perform well after listing.
Investorgain, a financial education app that provides information about IPOs, reported that the shares of the Ather Energy IPO are trading at a premium of Rs. 3 on the unlisted grey market. Ather Energy’s predicted listing price is Rs. 324 per share, representing a 0.93% rise over the IPO price of Rs. 321, based on the upper end of the IPO pricing band and the current grey market premium.
Should You Invest In Ather Energy?
During the last three fiscal years, the company’s average earnings per share (EPS) were Rs. 44.00, and its average return on net worth (RoNW) was -170.00%. Bajaj Broking firm rated the stock a “subscribe for long-term.” Furthermore, Baja Broking cautioned that only knowledgeable investors with extra money and a long-term outlook should consider a modest investment.
