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Ather Energy, an electric two-wheeler manufacturer, is gearing up for its Initial Public Offering (IPO), poised to deliver substantial returns to its early investors and founders. The IPO, scheduled to open for subscription on April 28, has generated considerable interest, particularly due to the potential for multi-bagger returns for stakeholders who invested in the company during its earlier stages. Tiger Global, a prominent investment firm that backed Ather Energy since 2015 through its Internet Fund III Pte, stands to gain significantly from the IPO. With an average acquisition price of approximately Rs 38.58 per share, the fund's 6.56 percent stake, comprising 1.98 crore shares, is projected to be valued at over Rs 655 crore at the upper price band of Rs 321 per share. This translates to a return of more than seven times the original investment, highlighting the success of Tiger Global's early bet on the electric vehicle manufacturer. Singapore's sovereign wealth fund GIC, through Caladium Investment, and the National Investment and Infrastructure Fund (NIIF), which joined Ather Energy's cap table in 2022, are also anticipated to realize substantial gains from the IPO. Caladium Investment, with an average acquisition price of around Rs 204.24 per share, holds a 15.43 percent stake, equivalent to 4.65 crore shares, valued at approximately Rs 1,493 crore. NIIF, possessing a 6.77 percent stake, or 2.04 crore shares, acquired at an average price of Rs 183.71 per share, expects its investment to be valued at around Rs 655 crore. The co-founders of Ather Energy, Tarun Mehta and Swapnil Jain, also stand to benefit significantly from the IPO. Each co-founder holds a 6.81 percent stake, representing 2.06 crore shares, with an estimated average acquisition price of Rs 43.27 per share. Their respective holdings are projected to be valued at roughly Rs 659 crore at the upper price band of the IPO. Hero MotoCorp, the largest stakeholder in Ather Energy, owning a 38.19 percent stake, or 11.51 crore shares, acquired at an average price of Rs 145.99 per share, is poised to witness its investment valued at approximately Rs 3,694 crore at the top end of the IPO price band. This substantial valuation underscores the strategic importance of Hero MotoCorp's investment in the electric vehicle manufacturer and its commitment to the growing electric mobility sector in India.
The Ather Energy IPO has been priced in the range of Rs 304-321 per share, offering investors an opportunity to participate in the growth story of the electric vehicle manufacturer. The IPO will open for subscription on April 28, with the anchor book scheduled to open on April 25. The subscription window will remain open until April 30, allowing investors to bid for the shares. The basis of allotment is expected to be finalized on May 2, with refunds initiated and equity credited by May 5. The stock of Ather Energy is tentatively scheduled to be listed on the exchanges on May 6, marking a significant milestone for the company and its investors. The IPO comprises a fresh issue of Rs 2,626 crore and an offer for sale (OFS) of up to 1.1 crore shares, which, at the upper end of the price band, translates to approximately Rs 354.76 crore. The total issue size has been revised down to around Rs 2,980.76 crore from an earlier plan of Rs 4,000 crore, reflecting a post-issue valuation of about Rs 11,956 crore. This valuation reflects the market's confidence in Ather Energy's growth prospects and its potential to disrupt the electric vehicle market in India. The company's financial performance for the nine months ended December 2024 indicates a positive trajectory, with revenue increasing to Rs 1,578.90 crore from Rs 1,230.40 crore in the corresponding period a year earlier. Furthermore, Ather Energy's net loss narrowed to Rs 577.90 crore from Rs 776.40 crore, demonstrating the company's progress in improving its financial performance and achieving profitability.
Ather Energy's IPO is significant as it marks the second pure-play Indian electric vehicle manufacturer to go public, following Ola Electric's IPO last year. This highlights the growing interest and investment in the electric vehicle sector in India, driven by increasing consumer awareness, government support, and technological advancements. The success of Ather Energy's IPO could pave the way for other electric vehicle manufacturers to tap into the capital markets and fuel their growth ambitions. The book running lead managers handling the public issue are Axis Capital, HSBC Securities and Capital Markets (India), JM Financial, and Nomura Financial Advisory and Securities (India). These investment banks will play a crucial role in marketing the IPO to investors and ensuring its successful execution. The IPO of Ather Energy is expected to generate significant interest from both domestic and international investors, given the company's strong brand reputation, innovative products, and the growth potential of the electric vehicle market in India. The IPO is an opportunity for investors to participate in the rapidly growing electric vehicle market and benefit from the long-term growth prospects of Ather Energy. The funds raised through the IPO will enable Ather Energy to expand its manufacturing capacity, invest in research and development, and strengthen its distribution network. This will help the company to further consolidate its position in the electric two-wheeler market and compete effectively with other players in the industry. Overall, Ather Energy's IPO is a significant event for the Indian electric vehicle industry, and its success could have a positive impact on the growth and development of the sector.