Ather Energy's IPO opens tomorrow: What you need to know
What's the story
Leading electric vehicle manufacturer Ather Energy will launch its initial public offering (IPO) tomorrow.
The offer will be available for subscription until April 30.
The company focuses on developing electric two-wheelers and an ecosystem of products such as software, smart accessories, and charging infrastructure, all created and developed in India.
Pricing details
Price range and offerings
The price band for Ather Energy's IPO has been fixed between ₹304 and ₹321 per equity share.
The offering consists of a fresh equity share issuance of ₹2,626 crore and an offer-for-sale of 1.1 crore equity shares by promoters and existing shareholders.
The company intends to utilize the proceeds from this IPO for a range of purposes over FY2026 to FY2028.
Information
IPO proceeds to be invested in EV plant, R&D, marketing
The company will allocate ₹927.2 crore from its IPO proceeds to set up an electric two-wheeler plant in Maharashtra, ₹40 crore to repay debt, ₹750 crore for research and development, and ₹300 crore for marketing.
Allocation details
Allocation and employee benefits
Ather Energy has reserved at least 75% of its IPO shares for qualified institutional buyers (QIBs), no more than 15% for non-institutional investors (NIIs), and up to 10% for retail investors.
An additional allocation of up to 100,000 equity shares has been reserved for employees, who will enjoy a ₹30 discount per share.
Timeline
Timeline and lead managers
The preliminary share allotment for Ather Energy's IPO will take place on May 2, with refunds being processed by the company on May 5.
Shares will be credited to allottees' demat accounts on the same day as refunds. The company's shares are expected to be listed on BSE and NSE on May 6.
Axis Capital Limited, JM Financial Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, and HSBC Securities & Capital Markets Pvt Ltd are the book-running lead managers.
Market outlook
Price in gray market
Ather Energy's shares are currently trading at a premium of ₹3 in the unlisted gray market, Investorgain reported.
Based on the upper end of the IPO price band and this gray market premium, Ather Energy's estimated listing price is projected at ₹324 per share.
This would mark a marginal increase of 0.93% over the IPO price of ₹321.