- The ₹2,981 crore issue will be open for public subscription from April 28 to April 30.
- The IPO will be a combination of fresh issue of equity shares worth ₹2,626 crore, and an Offer-For-Sale (OFS) of 1.1 crore equity shares by promoters and other shareholders
- The bidding for anchor investors will open for a day on Friday, April 25
- A lot will comprise a total of 46 shares
- Employee Discount of ₹30 per Equity Share; Employee Reservation Portion up to 1,00,000 Equity Shares
NE BUSINESS BUREAU
AHMEDABAD, APR 24
Bengaluru-based electric two-wheeler maker Ather Energy Ltd on Thursday said it has fixed a price band of ₹304 to ₹321 a piece for its ₹2,981 crore initial public offering (IPO). The issue will be open for public subscription from Monday, April 28 to Wednesday, April 30.
The bidding for anchor investors will open for a day on Friday, April 25, the company announced. This will be the first mainboard public issue of the current financial year. A lot will comprise a total of 46 shares
The IPO will be a combination of fresh issue of equity shares worth ₹2,626 crore, and an Offer-For-Sale (OFS) of 1.1 crore equity shares by promoters and other shareholders.
At the upper end of the price band, the IPO size is pegged at ₹2,981 crore, placing the company’s overall valuation at ₹11,956 crore.
Tiger Global, which first backed the company in 2015, is set to clock a multiple of 8.3x on its investment. Singapore-based sovereign wealth fund GIC, through Caladium Investment, and the National Investment and Infrastructure Fund (NIIF) — both of which joined Ather’s cap table in 2022 — are expected to clock multiples of 1.6x and 1.7x, respectively, the company’s red herring prospectus (RHP) showed.
Ather intends to raise funds for the establishment of an electric two-wheeler factory in Maharashtra and for debt reduction. The company plans to use the net proceeds to help it grow faster and improve its products. Out of the total, ₹927 crore will go into building a brand-new electric two-wheeler manufacturing plant in Maharashtra, while ₹750 crore will be spent on research and development.
Further, ₹40 crore will help pay off existing debts and ₹300 crore will be utilised for marketing in the coming three years.
Ather Energy on Thursday said it remains bullish on its scooter portfolios in the coming few years and that distribution expansion will drive a lot of growth in the near-term for the company.
“While the entire tariff situation is open, in our opinion, the India consumer story, specifically the Indian EV adoption story remains, unchallenged because that’s driven by very secular truths, (whether) US tariffs on or off, they have very limited impact on it,” Ather Energy co-founder and CEO Tarun Mehta said.
Ather’s operating revenue grew 28 percent to ₹1,578.9 crore in the first nine months of FY24, compared to the same period of the previous year.
In just nine months ending December 2024, the company managed to reduce its losses from ₹776 crore to ₹578 crore.
Unlike many other auto companies, Ather makes most of its parts in-house, such as dashboards, chassis, and motor controllers. Southern states contribute 61% of the sales, while Gujarat tops the chart of highest selling state in Western India.
A discount of ₹30 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion
75% of the offer is reserved for qualified institutional buyers, while 15% for non-institutional investors. The remaining 10% is reserved for retail investors.
The shares will be listed on May 6, on both the BSE and NSE.
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the Offer.
