Ather Energy, Tiger Global-backed electric vehicle company, is set to launch its initial public offering (IPO) next week. With a face value of Re 1, the IPO's price range is Rs 304 to Rs 321 per share.
The subscription window will open on Monday, April 28 and end on Wednesday, April 30. Anchor investors will get their allocation on Friday, April 25.
Investors can place bids for multiples of 46 shares, or as few as 46 shares. According to the IPO's structure, qualified institutional buyers will receive 75% of the offer, non-institutional investors will receive 15%, and retail investors will receive 10%.
Additionally, up to one lakh reserved shares will be discounted by Rs 30 per share for Ather Energy employees.
Refunds and shares credited to demat accounts are anticipated to be issued by Monday, May 5, following the completion of the share allocation on Friday, May 2. The stock is expected to make its debut on the BSE and NSE on Tuesday, May 6.
The Bengaluru-based company Ather Energy, which creates and produces electric two-wheelers like the well-known Rizta scooter, has been able to drastically cut its losses from Rs 776 crore to Rs 578 crore in the nine months that ended in December 2024.
Although actual manufacturing is outsourced, Ather develops most of its vehicle components in-house, including crucial parts like motor controllers, dashboards, and chassis, in contrast to many other automakers.
While some parts, like battery packs, are produced in-house, others, like motors and chargers, are purchased from outside vendors.
The IPO comprises an offer-for-sale (OFS) of 1.1 crore shares by current investors and company promoters, as well as a new issue of shares valued at Rs 2,626 crore.
National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd, IITM Incubation Cell, and the company's co-founders Tarun Mehta and Swapnil Jain have all sold their stakes.
Ather plans to build a new electric two-wheeler manufacturing facility in Maharashtra with the Rs 927 crore it received from the IPO.
Over the following three years, an additional Rs 40 crore will be allocated to debt repayment, Rs 750 crore to research and development, and Rs 300 crore to marketing.
The company will be listed on stock exchanges alongside peers like Hero MotoCorp, Bajaj Auto, TVS Motors, Eicher Motors, and the soon-to-be listed Ola Electric.
The lead managers for the IPO are Axis Capital, HSBC Securities, JM Financial, and Nomura, with Link Intime serving as the registrar.
