EV IPO Alert!! Ather IPO; Price, Subscription period, GMP and more…..

Ather Energy IPO: The company has set a price band of ₹304–₹321 per share, with investors able to place bids in lots of 46 shares each. Minimum Investment; ₹13,984

Ather Energy, the Indian electric two-wheeler manufacturer known for its integrated EV ecosystem, is entering the primary market with its Initial Public Offering (IPO). The subscription window for this IPO will be active from April 28th to April 30th, 2025, a period for investors to consider their participation.

Established in 2013, Ather Energy has positioned itself as a technology-driven EV brand, emphasizing its software capabilities and operational efficiency. The company's offerings encompass its range of electric scooters, the proprietary Atherstack software platform, and the Ather Grid charging infrastructure that extends across India, Nepal, and Sri Lanka. Furthermore, Ather Energy operates a significant manufacturing facility in Hosur and maintains a portfolio of intellectual property.

The IPO price band has been established between ₹304 and ₹321 per equity share. The minimum lot size for applications is 46 shares, translating to a minimum investment of ₹13,984 at the lower end of the price range. The total issue size of the IPO is ₹2,980.76 crore. This comprises a fresh issuance of equity shares amounting to ₹2,626.00 crores and an offer for sale by existing shareholders totaling ₹354.76 crores.

What are the proceeds going to be used for?

Ather Energy has outlined its intended utilization of the net proceeds from the fresh issue for several strategic objectives. These include the establishment of a new electric two-wheeler manufacturing facility in Maharashtra (allocating ₹6,272 million), investments in research and development activities (₹7,900 million), support for marketing and brand-building initiatives (₹2,000 million), repayment of existing debt (₹600 million), and for general corporate purposes.

GMP

Pertinent insights regarding Ather Energy's financial standing and valuation include the prevailing Grey Market Premium (GMP) of ₹10 (24/4/25). Considering the upper end of the IPO price band at ₹321.00, the estimated listing price would be ₹331 (incorporating the current GMP). This suggests a potential percentage gain of approximately 3.12% per share, based on the current GMP.

Peer Comparison

For the purpose of comparative analysis, the provided table presents key financial metrics of Ather Energy alongside its listed peers within the automotive and electric vehicle sectors. These metrics include the Current Market Price (CMP), Price-to-Earnings (P/E) ratio, Market Capitalization, Sales revenue, Operating Profit Margin (OPM), and Net Profit/Loss. This allows investors to benchmark Ather Energy against established players in the industry and gain a broader perspective on its valuation.