Ather Energy's Bold Move into the Public Market

Electric two-wheeler manufacturer Ather Energy has officially launched its Initial Public Offering (IPO), marking a significant milestone in India's rapidly evolving electric vehicle sector. With an aim to raise Rs 2,981 crore, the IPO is a mix of fresh equity shares and an Offer for Sale (OFS), setting the stage for a transformative phase in the company's growth trajectory.

IPO Details at a Glance

The price band is set at Rs 304-321, with a minimum lot size of 46 shares. The grey market premium is reported at 1% over the issue price. Leading the charge as lead managers are Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory.

Strategic Use of Proceeds

The funds raised will fuel several key initiatives, including the construction of a new electric two-wheeler factory in Maharashtra, debt repayment, and bolstering research and development efforts. Additionally, the proceeds will support marketing strategies and general corporate purposes, underscoring Ather Energy's commitment to innovation and market expansion.

Competitive Landscape and Market Outlook

Backed by Hero MotoCorp, Ather Energy is set to intensify its competition with Ola Electric in the electric two-wheeler segment. Analysts are optimistic about the IPO, highlighting the company's strong positioning in a market projected to grow at a 41-44% CAGR until FY31. Despite challenges like reduced government subsidies, Ather Energy has demonstrated resilience and a decreasing reliance on subsidies, signaling robust financial health.

(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)