Electric Vehicle start-up, Ather Energy is all set to end the two-month mainboard IPO lull with its Rs 2,981 crore listing drifting on Dalal Street on April 28. The public listing of the new-age start-up comes at a time when the market is sailing through turbulent waters around Trump’s tariff tantrums and uncertain global trade conditions.
That said, with its IPO, Ather Energy will become the second EV company to go public after rival Ola Electric Mobility made its market debut last August with its Rs 6,145 listing. Ather Energy will also be the first new-age company to list on the bourses in 2025.
The company has fixed a price band of Rs 304-321 apiece for its initial public offer, which will go live for subscription from April 28-30. Anchor investors will grab a chance to bid for the IPO on April 25.
Now while the IPO is grabbing attention already, investors still seem to be on a cautious footing amid uncertain market conditions. According to the grey market, the unofficial ecosystem where investors buy and sell shares or IPO applications before a company is officially listed on the bourses, Ather Energy was commanding a premium of about 3% over the upper range of its price band. As per Investorgain, a website that tracks grey market trends, Ather Energy was quoting a premium of Rs 7 over its price band.
Ather Energy had to struggle with uncertainty around market conditions even before it officially floated its public issue. The company had to readjust its valuations, partly due to the volatile market sentiment. At the upper end of its price band, Ather Energy commands a valuation of Rs 12,500 crore, or nearly $1.5bn, lower than the $2bn that it initially eyed.
The company is betting on the pemiumisation trend currently underway in India’s two wheeler market, along with the push towards EVs. To meet its goals, Ather Energy aims to use the funds raised through its IPO to set up a new electric two-wheeler manufacturing facility in Maharashtra and reduce existing debt..
The company’s public offer comprises of a fresh issue of equity shares worth Rs 2,626 crore and an Offer for Sale (OFS) of 1.1 crore shares by promoters and existing shareholders. Of the total issue, 75% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
