Ather Energy IPO: Key Details, Tentative Dates, and Valuation Insights

Market Performance

Ather Energy, one of India’s leading electric two-wheeler manufacturers, is preparing to launch its much-anticipated Initial Public Offering (IPO). The company had initially aimed for an IPO size of between Rs 3,500 and 3,700 crore. However, due to the current market conditions, this figure is expected to be reduced to a range of Rs 2,900 to 3,200 crore. The valuation of the company is also projected to decline by 25-30%, bringing it to an estimated post-money valuation of approximately Rs 12,800 crore.

Main News

Ather Energy, which is gearing up to file its Red Herring Prospectus (RHP), has received approval from SEBI in December 2024. The company plans to launch its IPO around 23 April 2025, depending on the market conditions and regulatory approvals. Initially, the IPO was scheduled for early April but has been delayed.

Hero MotoCorp, which holds a 37% stake in Ather Energy, will not sell any shares in the IPO. However, certain original founders and investors will exit, and the shareholder reservation section will cater to Hero MotoCorp’s current shareholders. This mechanism is expected to increase the chances of allocation for these shareholders, benefiting retail investors who own shares of Hero MotoCorp.

Company Details

Ather Energy, founded in 2013 by Tarun Mehta and Swapnil Jain, operates manufacturing facilities in Hosur, Tamil Nadu, and Whitefield, Bangalore. The company is known for producing a range of electric scooters, including the Ather 450 Apex, Ather 450X, Ather 450X Pro, Ather 450S, and Ather Rizta. The brand has earned a reputation for innovative design, high-quality engineering, and clean, modern aesthetics that appeal to India’s growing urban consumer base.

Summary

Ather Energy is on track to launch its IPO, with the tentative date set for 23 April 2025. The company has revised its expected IPO size and valuation downward due to the market environment. Hero MotoCorp holds a significant stake but will not be selling any shares in the offering. Ather’s electric scooters are gaining popularity in India’s competitive market, where they face competition from companies like Ola Electric, TVS Motor, and Bajaj Auto.