Ather Energy’s Initial Public Offering: A Significant Move in the Electric Two-Wheeler Market

The electric two-wheeler manufacturer Ather Energy has designated shares valued at Rs 1,340 crore (approximately $157 million) for anchor investors as it approaches its initial public offering (IPO).

The board of Unicommerce has passed a resolution to present 4,17,45,576 equity shares at an issue price of Rs 321 each (upper-band) to its anchor investors, according to its regulatory filing obtained from the Bombay Stock Exchange (BSE).

Key anchor investors for Ather include SBI, Abu Dhabi Investment Authority (ADIA), Invesco, Franklin Templeton, ICICI Prudential, Morgan Stanley, and Societe Generale. Of the total allocation, 49.6% was directed to seven domestic mutual funds via 14 schemes, as indicated in the filing.

Details of Ather Energy’s Public Offering

Ather Energy launched its public offering from 28th to 30th April, setting a price band of Rs 304-321 with a minimum bid quantity of 46 equity shares.

Before the anchor round, Hero MotoCorp was the leading shareholder in Ather Energy, possessing a 38.19% stake in the company. Caladium Investment (GIC) follows with a 15.43% share. The National Investment and Infrastructure Fund (NIIF) and Tiger Global maintain stakes of 14.22% and 6.56%, respectively. The co-founders of Ather, Mehta and Jain, each hold 6.81%. Ather estimated its valuation at $1.44 billion during its IPO, according to analyses by Startup Superb.

Financial Performance of Ather Energy

In the initial nine months of FY25, the company recorded sales of 1,08,000 vehicles, accruing revenue of Rs 1,578.9 crore. However, it faced a loss of Rs 579.6 crore during the same timeframe. For the complete fiscal year ending March 2024, Ather Energy reported total revenue of Rs 1,753 crore along with a loss of Rs 1,062 crore.