The key maker of electric two-wheelers, Ather Energy refiled its draft papers with market regulator SEBI intending to launch its IPO. Ather Energy’s IPO was initially scheduled to launch earlier this year. Earlier, the company Ather Energy already received a green signal from SEBI to launch its IPO. However, unfavourable market conditions led the company to delay launching its public issue. They are hoping that by May the condition of the market condition will improve. Eager investors must hope to see Ather Energy’s IPO float by the end of March.
According to the sources, we learned that the company is planning to launch its IPO in the first half of April with a revised valuation compared to what was initially decided.
The founders of the company Tarun Mehta and Swapnil Jain and some of the key investors National Investment and Infrastructure Fund Limited (NIIF) and Tiger Global Management’s Internet Fund III will be selling the portion of its shares in the company. However, Hero MotoCorp Ather’s largest shareholder, with a 37.2% stake will not participate in the offer for sale.
Axis Capital Limited, HSBC Securities and Capital Markets, JM Financial Limited, and Nomura Financial Advisory and Securities Private Limited are the lead managers of this IPO.
The IPO proceeds from the fresh issues will be utilized for capital expenditure to establish an electric two-wheeler factory in Maharashtra. Moreover, it will also used for research and development.
This IPO is going to be listed on the NSE (National and Securities Exchanges Board of India) and BSE (Bombay Stock Exchanges).
This will be the second electric two-wheeler company aiming to go public, after Ola Electric Mobility, which launched its ₹6,145 crore IPO in August 2024. It was also the first IPO by an automaker in India in over 20 years.
Ather Energy was founded in 2013 and is involved in designing its all products in India. They have the main aim of creating products and technology in India in order to build an electric two-wheeler market. In FY24, the company generated a revenue of ₹1,753 crores from operations
Ather Energy IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Ather Energy Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹413.80 | ₹757.90 | ₹344.10 |
| 2023 | ₹1,801.80 | ₹2,666.30 | ₹864.50 |
| 2024 | ₹1,789.10 | ₹2,674.20 | ₹1,059.70 |
Ather Energy IPO Valuation – FY2024
Ather Energy IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹(47) (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | (194%) |
| Net Asset Value (NAV): | ₹24 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Hero MotoCorp Limited | 187 | 30 | 21% | 884 | 37,788.60 Cr. |
| Bajaj Auto Limited | 273 | 40 | 29% | 935 | 44,870.40 Cr. |
| Ola Electric Mobility Limited | (4) | NA | (78%) | 6 | 5,009.80 Cr. |
| TVS Motors Limited | 36 | 78 | 26% | 143 | 39,144.70 Cr. |
| Eicher Motors Limited | 146 | 33 | 22% | 657 | 16,535.80 Cr. |
Objects of the Issue
- Capital expenditure to be incurred by our Company for establishment of an E2W factory in Maharashtra, India;
- Repayment/ pre-payment, in full or part, of certain borrowings availed by our Company;
- Investment in research and development;
- Expenditure towards marketing initiatives; and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Axis Capital Limited
- HSBC Securities and Capital Markets (India) Private Limited
- JM Financial Limited
- Nomura Financial Advisory and Securities (India) Private Limited
