Under the OFS, promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will offload their part stakes. Other selling shareholders include Tiger Global, IIT Madras incubation cell and few others.
Funds raised from the IPO will be used for capital expenditure to be incurred by the company for establishment of an electric two-wheeler factory in Maharashtra, repayment of debt, investment in research and development, expenditure towards marketing initiatives and general corporate purposes.
The company is backed by leading auto player Hero MotoCorp and also competes with Ola Electric in the two-wheeler listed space.
Key details about Ather Energy IPO
Price band: Rs 304-321
GMP: 1% over the issue price
Lot size: 46 shares
Should investors subscribe to Ather Energy IPO?
Most analysts say ‘Yes.’ Ather Energy is strongly positioned in India’s fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and arobust in-house R&D and technology ecosystem.
The company’s recent launches, like the Ather Rizta, have helped expand its customer base. Its upcoming Factory 3.0 will likely increase production capacity from 420,000 to 1.42 million units by FY27, while ongoing cost-cutting and R&D investments are expected to improve margins further.
“At the upper band of Rs 321, the issue is valued at a EV/sales ratio of 8x, based on a 9MFY25 sales of Rs 1579 crore. We are recommending a Subscribe for listing gain rating for this issue,” said Arihant Capital.
Ather Energy: Company outlook
The management of the expects industry-wide electric two-wheeler sales in India to grow at around 41–44% CAGR until FY31, and the company aims to tap into this by growing its product range, reducing costs through localisation and new battery technologies, and increasings oftware monetisation opportunities.
While the reduction of government subsidies has been a challenge, the company has managed to improve its profitability metrics and reduce subsidy dependence.
Book running lead managers
Axis Capital, HSBC Securities, JM Financial, Nomura Financial Advisory are managing the IPO.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
