As an investor, deciding whether the IPO is Good or Bad to invest in can often be challenging. If you are confused and worried about whether to Apply or Not the Ather Energy IPO. Then worry not, here we are describing 10 important key points & an in-depth, detailed Ather Energy IPO review which will help you to make the decision.
Ather Energy IPO Shareholders Quota:
Initially, when Ather Energy filed DRHP, there was a shareholder quota which would benefit shareholders and its parent company, Hero MotorCorp, to apply under the reserved category in the IPO.
However, in the final Red Herring Prospectus (RHP), the company removed the shareholder quota, meaning its parent company Hero MotoCorp shareholders will no longer have special treatment to apply for the IPO and will only be able to apply under RII, QIB, and NII categories.
Strengths and Weaknesses of Ather Energy IPO
Strengths:
- The company’s E2Ws vehicles are priced higher than other similar products as they offer high-quality and superior features, explaining the higher price.
- They incorporate powerful technology that helps the company to grow and expand its business, allowing for the faster launch of new products.
- The company consists of a smart and knowledgeable management team and investors who are dedicated to running the company for the long term.
- Their goal is to become a top player by launching electric two-wheelers (E2Ws) that engage a wider market.
Weaknesses:
- Apart from the batteries, all of the other key EV parts they used to build Electric two-wheelers are mostly dependent on their supplier. Failing to retain those suppliers or losing those suppliers could lead to a loss of business.
- Since the company was founded, it has been operating at a great loss, reporting a loss before tax of ₹5,779 million for the nine months ending Dec 31, 2024, and a loss of ₹10,597 million for the FY24, meaning there is no guarantee that the company will be profitable in the future.
- They have received many complaints in the past regarding their products. There is no commitment that they will not receive such complaints again in the future, or that they will be able to solve the issue quickly or on time.
Ather Energy IPO Details
| IPO Size | ₹2,980 crores |
| Offer-for-sale | 1,10,51,746 equity shares |
| Fresh issue | ₹2,626 crores |
| Price band | ₹304 to ₹321 |
| Subscription | April 28 to April 30, 2025 |
| Purpose of IPO | Fresh Issue and Offer-for-sale |
1. Ather Energy IPO Open and closing date?
Ather Energy IPO will be open for subscription on April 28, 2025, and will be closed for subscription on April 30, 2025.
2. What is the size of the Ather Energy IPO?
The company planned to raise funds of around ₹2,980 crores via IPO. This IPO comprises a combination of a fresh issue of ₹2,626 crores and an Offer-for-sale of up to 1,10,51,746 equity shares with a face value of Rs.1 each.
3. What are the subscription details of the Ather Energy IPO?
The Ather Energy IPO price range is set at ₹304 to ₹321 per share. In this IPO, a total of 46 shares were available in 1 lot size for the minimum Retail category, for the maximum retail category, 598 shares in 13 lot sizes were available, for the S-HNI Minimum category, 644 shares were available in 14 lot sizes. While for the B-HNI Minimum category, 3,128 shares were available in 68 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹14,766 and maximum investment of ₹1,91,958.
- Small HNI (S-HNI): Minimum investment of ₹2,06,724.
- Big HSI (S-HNI): A minimum investment of ₹10,04,088 is required.
4. What is the Ather Energy IPO listing Date?
Ather Energy is a Mainboard IPO shares will be listed on May 5, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
5. What are the objectives of the Ather Energy IPO Issue?
The objective behind raising funds via IPO is to utilize the funds for the development of the E2W factory in Maharashtra, India. The proceeds raised from the fresh issue will be used for the repayment, pre-payment of the existing borrowings taken by the company. The funds will be used for the investment in research and development, funds will be utilized towards marketing initiatives, and lastly, the remaining funds will be used for the company’s general corporate purposes.
6. About Ather Energy
Founded on 21 December 2013, Ather Energy is one of the leading companies when it comes to the electric two-wheeler E2W industry in India. The company is engaged in offering electric two-wheelers with a complete product ecosystem that consists of its own software, charging stations, and smart accessories. Battery packs, motor controllers, transmissions, control units, dashboards, converters, wiring, and chassis, most of these key parts of the two-wheelers are made by the company. In nine months ending December 31, 2024, they have sold 107,983 electric two-wheelers, while as of FY24, they have sold 109,577 E2Ws, making them the third-largest company to sell E2Ws.
7. Ather Energy IPO Financials
The company reported revenue of ₹1,789.1 crores in 2024 against ₹1,801.8 crores in 2023. The company reported a loss of ₹1,059.7 crores in 2024 against a loss of ₹864.5 crores in 2023.
8. Ather Energy IPO Promoters
Tarun Sanjay Mehta, Swapnil Babanlal Jain, and Hero Motocorp Limited are the promoters of the company.
9. Who are the Ather Energy IPO lead managers and registrar?
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Private Limited are the lead managers of Ather Energy, while MUFG Intime India Private Limited is the registrar of the company.
10. Should you apply or not for the Ather Energy IPO?
Deciding whether to apply or not for the Ather Energy IPO indeed depends on your investment goals. Smart investment can only be done with a proper financial background check on the company, risk tolerance, and a clear understanding of the market potential and competition in the electric market. Ather Energy is a major company that sells electric two-wheelers E2Ws that target quality and user experience. In June 2018, the company launched its first product, called Ather 450, which came with smart features such as a 3G SIM card, a touch screen dashboard, an aluminium chassis, and cloud connectivity. With the years passing, the company introduced two of its product lines, the Ather 450, which was perfect for people who want high-performance rides, and Ather Rizta, for families who are seeking comfortable and conventional rides.
Ather energy is focused on running its business by implementing sustainable practices that are good for the environment and follows strong ethical and management practices. As of the Nine Months ended December 31, 2024, the company generated revenue of 15,789 from operations. The company consists of 731 R&D employees working across 3 facilities in Bengaluru, India, as of December 31, 2024. If you are wondering whether you should apply or not for the Ather Energy IPO, then it depends on your financial goals. We recommend first checking the company’s financial performance, its strengths, the company’s weaknesses, and market volatility, and applying for the IPO at your own risk. If you are stuck with any query, please feel free to reach out to IPOWatch. We will be happy to help you with solving any doubts or queries.
