Bengaluru-based EV manufacturer Ather Energy Ltd. has announced its Initial Public Offering (IPO), setting the price band between Rs 304 and Rs 321 per share, according to a public advertisement released Wednesday. At the upper limit, the IPO is expected to raise Rs 3,000 crore, valuing the company at Rs 12,000 crore.
This will be the first mainboard IPO of the current financial year, signaling a cautious return of investor sentiment after months of market volatility.
IPO Structure and Employee Discount
The offering consists of:
- A fresh issue of shares worth Rs 2,626 crore
- An offer for sale of 11.05 lakh equity shares
Co-founders Tarun Mehta and Swapnil Jain are set to offload nearly 1 million shares each. Meanwhile, Hero MotoCorp, which owns a 37.5% stake, has opted not to sell its shares in this offering.
Employees of Ather are being offered a Rs 30 discount per share, with the minimum bid set at 46 shares or multiples thereof.
Financial Metrics & Market Context
Due to losses reported for the financial year ending March 2024, a price-to-earnings (P/E) ratio could not be provided for this IPO. This makes the issue more speculative for investors focused on profitability.
Despite its smaller size compared to past IPOs, Ather’s listing will be closely watched as it follows turbulent developments at BluSmart (Gensol Engineering Ltd.) and Ola Electric Mobility Ltd.—two other notable players in India’s EV ecosystem.
Why This IPO Matters
- Revives primary market activity amid cautious optimism
- Tests investor appetite in the EV segment
- Backed by Hero MotoCorp, a major auto player maintaining full ownership
Investors now await subscription dates and the official listing. Ather’s IPO will not only raise capital but also serve as a benchmark for future EV IPOs in India.
