Highlights
Ather Energy, a notable electric two-wheeler manufacturer, has established a price range of Rs 304–Rs 321 for its forthcoming initial public offering (IPO). This IPO will be available for subscription from April 28 through April 30.
As outlined in the red herring prospectus (RHP), the overall size of Ather Energy’s offering is estimated at Rs 2,980.7 crore, which includes a fresh issue of Rs 2,626 crore alongside an offer for sale valued at Rs 354.76 crore.
Investors interested in Ather Energy’s IPO can apply for a minimum of one lot, which consists of 46 shares, necessitating a minimum investment of Rs 13,984. The offering is structured as a book-building issue, with 75% of the shares allocated for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, as per the RHP.
Details of the Offer for Sale
Within the offer for sale, Tiger Global is looking to divest 400,000 equity shares, which were acquired at an average price of Rs 38.58 per share, yielding an impressive return of 8.3 times its investment. Additionally, Caladium Investment is anticipated to achieve a 57% return, while the National Investment and Infrastructure Fund II is expected to register a 74% return from its investment in the OFS.
The RHP indicates that Hero MotoCorp is the primary shareholder in Ather Energy, holding 38.19% of the company’s stock. Following Hero MotoCorp is Caladium Investment (GIC) with a 15.43% stake. The National Investment and Infrastructure Fund (NIIF) and Tiger Global possess 14.22% and 6.56%, respectively. Co-founders Mehta and Jain each own 6.81% of the company’s shares. According to estimates from Startup Superb, Ather has self-valued at $1.44 billion during its IPO process.
Financial Performance Snapshot
In the initial nine months of FY25, Ather sold a total of 108,000 vehicles, generating a revenue of Rs 1,578.9 crore. Despite this, the company experienced a loss of Rs 579.6 crore for that same period. For the entire fiscal year concluding in March 2024, Ather recorded a revenue of Rs 1,753 crore, along with a total loss of Rs 1,062 crore.