Ather Energy Sets Price Band at ₹304-321 for IPO
Electric scooter maker Ather Energy has set a price band of ₹304-321 per share for its initial public offering (IPO), which is all set to hit the markets next week. The issue, which will open for subscription on April 28, comprises a fresh issue worth ₹2,626 crore and an offer for sale (OFS) of 1.1 crore shares. At the upper end of the band, the OFS would be worth about ₹354.76 crore.
Ather Energy’s IPO is significant as it marks the first public issue in two months, giving investors a rare opportunity to participate in the equity market. The company’s IPO is also notable as it is one of the few electric vehicle (EV) companies to go public in India.
Ather Energy is a Bengaluru-based company that has been making waves in the electric scooter market with its range of high-performance scooters. The company, which was founded in 2013, has been growing rapidly and has established a strong presence in the Indian market. Its scooters are known for their sleek design, advanced technology, and impressive performance.
The company’s IPO is seen as a major milestone in its journey, as it will provide the company with the necessary funds to scale up its operations and expand its product portfolio. The fresh issue of ₹2,626 crore will be used to fund the company’s growth plans, including the expansion of its manufacturing capacity, development of new products, and enhancement of its sales and marketing efforts.
The OFS portion, which consists of 1.1 crore shares, will be offered by existing shareholders, including the company’s founders and investors. The OFS is expected to generate significant proceeds, which will be used by the company’s existing shareholders to exit their stake in the company.
Ather Energy’s IPO is expected to be a highly sought-after issue, given the company’s strong brand reputation and growth prospects. The company has a strong track record of sales and revenue growth, and its products have been well-received by customers. Its scooters are known for their high-performance capabilities, advanced technology, and sleek design, which has helped the company to establish a strong brand presence in the Indian market.
The company’s financial performance has been impressive, with its revenue growth accelerating in recent years. In the financial year 2020-21, the company’s revenue grew by 146% to ₹643 crore, driven by strong demand for its scooters. The company’s net loss also narrowed to ₹123 crore in the same period, from ₹264 crore in the previous year.
Ather Energy’s IPO is also notable as it is one of the few electric vehicle companies to go public in India. The company’s decision to go public is seen as a major boost to the Indian EV industry, which has been growing rapidly in recent years. The company’s IPO is expected to attract significant attention from investors, given the growth prospects of the Indian EV industry.
The Indian government has been actively promoting the adoption of electric vehicles in the country, with a target of having 30% of new vehicle sales to be electric by 2030. The government has also announced several initiatives to promote the growth of the EV industry, including the introduction of incentives such as subsidies and tax benefits.
Ather Energy’s IPO is expected to be a highly sought-after issue, given the company’s strong brand reputation and growth prospects. The company’s decision to go public is seen as a major milestone in its journey, as it will provide the company with the necessary funds to scale up its operations and expand its product portfolio.
In conclusion, Ather Energy’s IPO is a significant event in the Indian equity market, as it marks the first public issue in two months. The company’s IPO is expected to be a highly sought-after issue, given its strong brand reputation and growth prospects. The company’s decision to go public is seen as a major milestone in its journey, as it will provide the company with the necessary funds to scale up its operations and expand its product portfolio.
