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Ather Energy IPO Already Raises Rs 2,980.76 Crore: All Details Here
The electric two-wheeler sector is about to witness an exciting event as Ather Energy Ltd. makes its debut on the stock exchanges on May 6. This marks a significant milestone for the Bengaluru-based company, which has been making waves in the electric vehicle (EV) market. Having completed its initial public offering (IPO) between April 28 and April 30, Ather Energy has successfully raised Rs 2,980.76 crore. This IPO has attracted considerable attention, reflecting the growing interest in sustainable and innovative transportation solutions.
The listing of Ather Energy's shares is poised to take place following a successful subscription period that saw the IPO oversubscribed by 1.43 times by the closing day. The opening day registered a subscription rate of 16%, which then increased to 28% by the second day. Such numbers indicate strong investor confidence in the company's potential. The IPO comprised a fresh issue of shares worth Rs 2,626 crore and an offer-for-sale (OFS) component of Rs 354.8 crore, with the price range set between Rs 304 and Rs 321 per share.
Financial Highlights and Use of IPO Proceeds
The company disclosed a significant revenue increase for the first nine months of FY25, reaching Rs 1,578.9 crore, which is a 28.30% rise from Rs 1,230.4 crore during the same period in FY24. Despite these impressive revenue figures, Ather Energy reported a net loss of Rs 577.9 crore in the first nine months of FY25, an improvement from the losses recorded in the previous fiscal years. As of February 28, 2025, its total debt stood at Rs 533.6 crore, highlighting the financial challenges it faces alongside its growth.
Ather Energy has outlined specific allocations for the net proceeds from its IPO. These include establishing a new electric two-wheeler manufacturing facility in Maharashtra, repaying or prepaying certain outstanding borrowings, and investing in research and development. Funds will also be directed towards marketing initiatives and general corporate expenses, indicating a robust plan for future expansion and sustainability of its business model.
Market Anticipation and GMP Insights
Ahead of its stock market listing, Ather Energy's shares are showing a promising outlook with a Grey Market Premium (GMP) of Rs 7 per share as of May 5, 10:37 am. This suggests an estimated listing price of Rs 328 per share, indicating an expected gain of about 2.18% from the upper end of the IPO price band. It's important to note, however, that GMP is based on speculative data and not an official market indicator.
Ather Energy's approach to the EV market is comprehensive, extending beyond just manufacturing electric two-wheelers. The company prides itself on providing a full ecosystem of products, including software solutions, charging infrastructure, and smart accessories, all developed in-house. This holistic approach is supported by the company's innovation in creating its own battery packs, portable chargers, and motors, alongside designing critical components like motor controllers and vehicle control units. By outsourcing the manufacturing of these components, Ather maintains a focus on core innovation and quality.
DriveSpark Thinks
The IPO listing of Ather Energy Ltd. on May 6 represents a significant event for investors and the electric vehicle industry. With its strong emphasis on innovation, comprehensive ecosystem, and strategic investment plans, Ather Energy is positioned to make a notable impact in the evolving market of electric two-wheelers. As the company moves forward with its expansion and development initiatives, the financial community will undoubtedly keep a close watch on its progress and contribution to sustainable transportation solutions.
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