IPO Details
RHP/DRHPIssue Date
28 Apr - 30 Apr'25
Investment/lot
₹ 14766
Price Range
304 - 321
Lot Size
46
IPO Size
₹ 2980.76 cr
Schedule of Ather Energy Ltd IPO
Start date
28/04/2025
End date
30/04/2025
Allotment of bids
02/05/2025
Refund Initiation
Listing on exchange
05/05/2025
About Ather Energy Ltd IPO
Ather Energy Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹3100 crores, the offer for sale consists of up to 22,000,766 equity shares with a face value of ₹1 each.
Objectives of Ather Energy Ltd IPO
The company proposes to use the net proceeds from the IPO for:
- Capital expenditure to be incurred by the company for the establishment of an E2W factory in Maharashtra
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company
- Investment in research and development
- Expenditure towards marketing initiatives
- General corporate purposes
Ather Energy Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | April 30, 2025 |
Fresh Issue | Up to ₹3100 crores |
Offer for Sale | Up to 22,000,766 equity shares |
EPS (in ₹) for FY 24 | (47) |
Ather Energy Ltd IPO Lot Size
| Category | Retail HNI | HNI |
|---|---|---|
Min share | 46 | 644 |
Min Amount | 14766 | 206724 |
Ather Energy Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the net offer |
Non-institutional Investors (NIIs) | Not more than 15% of the net offer |
Retail-individual Investors (RIIs) | Not more than 10% of the net offer |
Industry Outlook
The electric two-wheeler retail rose at a sharp growth pace of 101% CAGR in the last 6 years. If the government continues with the demand incentive (FAME, EMPS or an equivalent alternate form) at least for the next 1 year (till fiscal 2026), CRISIL MI&A expects the EV retail to rise at a healthy pace of ~41% CAGR and reach volumes of ~10.2 million in fiscal 2031.
Company Information
Ather Energy Ltd is a pioneer in the Indian electric two-wheeler (“E2W”) market. The company is a pure-play EV company that designs all its products ground up in India. According to the CRISIL Report, in FY 2024, the company was the third-largest player by volume of E2W sales.
Strengths of Ather Energy Ltd IPO
Ability to Pioneer New Technologies
The company's strong in-house R&D capabilities across different disciplines give it control over the design of its existing and future product offerings. Through its focused R&D team globally it has filed 273 patents, 219 design registrations and 392 trademarks. It has been granted 45 patents, registered 291 trademarks and 199 design registrations, as on August 31, 2024.
Ather's E2Ws are Positioned at a Premium Price Within Their Respective Segments in the Indian E2W Market
The company's focus on quality and user experience enables it to position its E2Ws at a premium price within both the performance and convenience scooter segments. Its software-defined ecosystem is designed to generate engagement to enhance its product quality and elevate the user experience. The company had 3,826 unique tests to validate all components of itsE2W, as at March 31, 2024.
Vertically Integrated Approach to Product Design with Strong in-house R&D Capabilities
Its control over the design of key components of its E2Ws and accessories, including the underlying software, gives it speed to market, control over quality, cost management capabilities, access to partnerships with large technology companies, and the ability to deliver an improved user experience. It made 204 component upgrades in FY 2024 via engineering changes, which enabled the company to drive higher sales volumes and adapt to market developments.
Software-defined Ecosystem That Drives Customer Engagement and Margins
Powered by the in-house developed Atherstack, its software-defined ecosystem aims to improve user experience and drive customer engagement. Ather's continued innovation and improvements to its product ecosystem, driven by insights from the Atherstack, generate a flywheel effect. As of March 31, 2024, 89% of customers who purchased the company's E2Ws also purchased access to the advanced features of the Atherstack.
Scalable Technology Platform Enabling Accelerated Product Launches
The company’s technology platform, comprising its battery, powertrain, electronics, chassis and Atherstack, serves as the backbone of its entire product lineup. The company's scooters based on the 450 platform have clocked 3.2 billion kilometers since launch.
Risks of Ather Energy Ltd IPO
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Ather’s future growth is dependent on the demand for and adoption of electric two-wheelers. If the market does not develop as it expects, or develops at a speed that is slower than anticipated, its business, prospects, financial condition and operating results will be affected.
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The company currently derives its revenue predominantly from the sale of limited electric two-wheeler models. If its electric two-wheelers are not well-received by the market, its business and future prospects could be adversely impacted.
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The retail prices of the company’s electric two-wheelers are susceptible to a reduction or elimination of government incentives or the ineligibility of its electric two-wheelers for such incentives. The increased retail price could affect customer demand and in turn, adversely impact its business and prospects.
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Any disruptions in the availability and any changes in the pricing and quality of lithium-ion cells could cause significant disruptions to and adversely impact its business operations.
All Financial Information about Ather Energy Ltd
Particulars (in Rs. crore)
Particulars (in Rs. crore)
Comparison with peers
| Parameter | Ather Energy Ltd | Hero MotoCorp Ltd | Bajaj Auto Ltd | Ola Electric Mobility Ltd | TVS Motors Ltd | Eicher Motors Ltd |
|---|---|---|---|---|---|---|
Revenue from Operations (in ₹ crore for FY 24) | 1753.80 | 37788.60 | 44870.40 | 5009.80 | 39144.70 | 16535.80 |
P/E for FY 24 | NA | 30 | 40 | NA | 78 | 33 |
Return on Net Worth for FY 24 in % | (194) | 21 | 29 | (78) | 26 | 22 |
EPS in ₹ for FY 24 | (47) | 187 | 273 | (4) | 36 | 146 |
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the Ather Energy Ltd IPO. The book running lead managers are:
- Axis Capital Limited
- HSBC Securities and Capital Markets (India) Private Limited
- JM Financial Limited
- Nomura Financial Advisory and Securities (India) Private Limited
Business Model
Ather Energy Ltd designs and develops E2Ws, battery packs, charging infrastructure, associated software and accessories. It manufactures its battery packs and assembles E2Ws in-house. It sold 109,577 E2Ws in FY 2024.
Company Growth Trajectory
Despite being positioned at premium prices, Ather’s products recorded an increase in sales volumes to 109,577 in FY 2024 from 92,093 in FY 2023 and 23,402 in FY 2022. Its revenue from operations, which stood at ₹ 408.90 crores in FY 22 grew to ₹1753.80 crores in FY 24. Its E2W market share increased from 7.9% in FY 22 to 11.5% in FY 24.
Ather Energy Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1789.10 | 1801.80 | 431.80 |
EBITDA (in ₹ crore) | (649.40) | (686.70) | (255.00) |
EPS (in ₹) | (47) | (48) | (27) |
Ather Energy Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | (267.60) | (871.30) | (228.40) |
Net Cash Used in Investing Activities (in ₹ crore) | (228.10) | (135.00) | (6.6) |
Net Cash Generated from Financing Activities (in ₹ crore) | 633.2 | 1317.40 | 230.70 |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 506.00 | 368.5 | 57.40 |
How to Check Allotment Status of Ather Energy Ltd IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Ather Energy Ltd
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Link Intime Private Ltd:
- Visit the website of Link Intime Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Ather Energy Ltd IPO?
Here are the steps to apply for Ather Energy Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Ather Energy Ltd IPO FAQs
What is the minimum lot size required for Ather Energy Ltd IPO?
The minimum lot size is 46 shares and the investment required is ₹14766.
What is the price band of the Ather Energy Ltd IPO?
The price band of Ather Energy Ltd IPO is ₹304 to ₹321.
Where can I read more about Ather Energy Ltd business?
You can read more about Ather Energy Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Ather Energy Ltd IPO?
The Ather Energy Ltd IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue size is pegged at ₹3100 crores.
Is Ather Energy IPO coming?
Yes, Ather Energy Ltd is expected to come up with its IPO soon.
Who is the CEO of Ather Energy?
Tarun Sanjay Mehta is the CEO of Ather Energy Ltd.
From where can I read more about the IPO of Ather Energy Ltd?
You may read more about Ather Energy Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
