From April 28 to April 30, Ather Energy, a manufacturer of electric two-wheelers, will begin accepting subscriptions for its initial public offering (IPO). Employee stock ownership plans (ESOPs) and selling stockholders will both profit from the IPO.
Employees must wait a while (a few months to a year) to sell their holdings, while investors and promoters are expected to sell shares worth Rs. 530 crore in the offer for sale.
The company's total ESOP (employee stock options) pool is 16.23 million, per Ather's red herring prospectus. Ather's entire outstanding ESOPs would be worth about Rs. 530 crore (about $62 million) at the highest price range of Rs. 321 specified in the RHP.
Notably, between the beginning of FY25 and the RHP filing date, the company issued 4.6 million employee stock options.
With a fresh issue of Rs. 2,626 crore and an offer for sale of Rs. 354.76 crore, Ather Energy's planned public listing has a total issue size of Rs. 2,980.7 crore.
An initial investment of at least Rs. 13,984 is required for the new issuance, and investors may bid for a minimum of one lot consisting of 46 shares. Because it is a book-built issue, Qualified Institutional Buyers (QIBs) will receive 75 percent of the offer, followed by Non-Institutional Investors (NIIs) at 15 percent and retail investors at 10 percent.
Tiger Global intends to sell 4,00,000 equity shares in the offer-for-sale segment. The company purchased the shares at an average price of Rs. 38.58 per, resulting in an excellent 8.3X return.
