IPO Details
Issue Opening Date: April 28, 2025
Issue Closing Date: April 30, 2025
Issue Size: ₹2,980.76 Cr. (@ upper price band of ₹321)
Fresh Issue: ₹2,626 Cr.
Offer for Sale (OFS): ₹354.76 Cr.
Price Band: ₹304 to ₹321 per Equity Share
Employee Discount: ₹30/Share
Lot Size: 46 Shares & in multiples thereafter
Minimum Application: ₹14,766 (46 Shares)
Maximum Application: ₹191,958 (598 Shares)
Small HNI: ₹206,724 (644 Shares)
Big HNI: ₹1,004,088 (3,128 Shares)
Our View: Cautious
Company Overview
Ather Energy is a pure play EV company that sells electric two-wheelers (E2Ws) and a supporting product ecosystem including software, charging infrastructure, and smart accessories. It’s one of the pioneers in the Indian E2W market with a strong brand presence and vertical integration across R&D, software, and manufacturing.
Highlights
Premium pricing in E2W segments
Strong in-house R&D and vertically integrated product development
Engaging software ecosystem that adds to customer value
Scalable technology enabling quick rollouts
Pioneering new technologies in India’s EV sector
Objects of the Issue
₹927.2 Cr. towards setting up a new E2W factory in Maharashtra
₹40 Cr. for repayment of borrowings
₹750 Cr. for investment in R&D
₹300 Cr. for marketing initiatives
General corporate purposes
Note: The company will not receive proceeds from the Offer for Sale.
Our View
Incorporated in 2013, Ather Energy is the 4th largest E2W company in India by volume. While it leads in fast-charging networks and has made significant strides in technology, it remains a loss-making entity. It had stagnant revenue in FY24 and continues to burn cash.
On the valuation front, the IPO is priced at a P/BV of 80.25x with a negative P/E. The issue’s pricing looks expensive when compared to peers like Hero MotoCorp and TVS Motors.
However, the EV sector in India has promising long-term prospects. Risk-savvy investors may consider investing with a long-term horizon.
Financial Highlights (FY24)
EBITDA Margin: 13.9%
PAT Margin: 8.5%
ROCE: 63%
Debt-to-Equity: 0.07x
Risks to Consider
Stagnant revenue and recurring losses
High valuation vs peers
Limited operating history
Uncertain future performance
Brief Financials
| PARTICULARS |
As at Dec. ‘24 |
|
|
₹ in Million |
| FY ’24 |
FY ‘23 |
FY ‘22 |
| Total Income |
16,174 |
17,891 |
18,018 |
4,138 |
| Total Expenditure |
21,953 |
26,742 |
26,663 |
7,579 |
| EBITDA |
3,716.93 |
15,831.24 |
13,737.89 |
10,685.99 |
| Loss before Tax |
(5,779) |
(10,597) |
(8,645) |
(3,441) |
| Profit after Tax |
(5,779) |
(10,597) |
(8,645) |
(3,441) |
| E.P.S. (Diluted) |
2.69* |
(47) |
(48) |
(27) |
| P/E (x) (Diluted) |
- |
- |
- |
- |
| RONW (%) |
(535)* |
(153) |
(141) |
(194) |
PRICE CHART (@ ₹ 675) (Retail Category)
| LOT SIZE |
| Amount |
| 46 |
14,766 |
| 92 |
29,532 |
| 138 |
44,298 |
| 184 |
59,064 |
| 230 |
73,830 |
| 276 |
88,596 |
| 322 |
103,362 |
| 368 |
118,128 |
| 414 |
132,894 |
| 460 |
147,660 |
| 506 |
162,426 |
| 552 |
177,192 |
| 598 |
191,958 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
644 |
206,724 |
| Big HNI |
3,128 |
1,004,088 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
2/5/2025 |
| Initiation of refunds/unblocking ASBA Fund |
5/5/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
5/5/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
6/5/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
