Market Performance
Ather Energy Ltd. is on track to launch its delayed initial public offering (IPO) by the end of this month. However, the size of the offering has been scaled down.
Main News
The Ather Energy IPO is scheduled to open for subscription on April 28 and close on April 30, according to the red herring prospectus filed with the Securities and Exchange Board of India (SEBI). The anchor placement is planned for April 25.
The offering will consist of a fresh issue of shares valued at Rs 2,626 crore, which is smaller than the previously stated amount of Rs 3,100 crore in the draft red herring prospectus (DRHP). It also includes an offer-for-sale of more than 1.1 crore shares. Notably, Hero MotoCorp Ltd., Ather Energy’s largest shareholder, will not participate in this offering.
This marks the first mainboard IPO of the fiscal year 2026 (FY26).
Company Details
Ather Energy was co-founded over ten years ago by Tarun Mehta and Swapnil Jain during their time at IIT Madras. The company filed its initial draft IPO documents in September 2024. After receiving approval with some observations in December, the company has now filed the red herring prospectus. The timing of the filing coincides with a recovery in the stock market after a prolonged correction period.
Financial Overview
EBITDA Margins
Ather Energy has witnessed a substantial improvement in its margins, with its margins doubling since the DRHP was filed.
Net Profits
While net profits were not disclosed, the company has significantly reduced its losses, thanks to the success of its Rizta family scooter.
Summary
Ather Energy is preparing to launch its IPO at the end of April, offering shares worth Rs 2,626 crore. The offering is smaller than initially expected and includes an offer-for-sale of over 1.1 crore shares. This will be the first major IPO of FY26, and it comes as Ather Energy has made notable improvements in its financials, especially driven by the success of its Rizta scooter.
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