Ather Energy IPO: What Investors Should Know Before Subscribing
Ather Energy’s ₹2,981 crore IPO opens on April 28. Here’s a complete guide to the price band, GMP, allotment schedule, and usage of funds.
Key Highlights:
Ather Energy IPO: ₹2,981 Crore Public Issue Opens April 28
The highly anticipated Ather Energy IPO is set to open for subscription on Monday, April 28, 2025. The electric two-wheeler manufacturer aims to raise ₹2,981 crore through the offer, which includes a fresh issue of ₹2,626 crore and an offer-for-sale (OFS) of ₹355 crore by existing investors.
The IPO will remain open until April 30, with the price band set at ₹304–₹321 per share. The face value of each equity share is ₹1.
Use of IPO Proceeds: Capacity Expansion & R&D
The funds from the Ather Energy IPO will be strategically used to bolster the company’s production and innovation efforts. Key allocations include:
- ₹927.2 crore for a new manufacturing plant in Maharashtra
- ₹750 crore for R&D development
- ₹300 crore towards branding and marketing
- ₹40 crore to reduce outstanding debts
The capital deployment will occur across FY26–FY28, reinforcing Ather’s long-term vision in the electric mobility space.
Grey Market Premium Suggests Modest Listing Gain
As of April 26, the IPO is witnessing a Grey Market Premium (GMP) of ₹3. This translates to an estimated listing price of ₹324 per share, reflecting a minor premium of around 0.93% over the upper price band.
While GMP is unofficial and volatile, it offers a glimpse into market sentiment ahead of listing.
Strong Institutional Backing for Ather Energy
Ather Energy has already raised ₹1,340 crore from 36 anchor investors in a pre-IPO placement. Notable participants include:
- Custody Bank of Japan
- Franklin Templeton
- Abu Dhabi Investment Authority
- Morgan Stanley
- Aditya Birla Sun Life Mutual Fund
- ICICI Prudential MF
The anchor book allocation signals strong institutional confidence in the company’s prospects and valuation.
Key IPO Dates and Listing Information
Here’s the complete timeline for Ather Energy’s IPO lifecycle:
- IPO Open & Close: April 28 to April 30, 2025
- Allotment Finalization: May 2, 2025
- Refund Initiation: May 5, 2025
- Shares Credited to Demat Accounts: May 5, 2025
- Listing on BSE & NSE: May 6, 2025
Retail investors can apply through ASBA-enabled bank accounts or UPI-supported brokers.
What Lies Ahead
With India’s electric vehicle market gaining momentum, Ather Energy’s IPO offers investors a strategic entry into a high-growth sector. The company’s expansion plans, combined with R&D investment and brand positioning, suggest strong future potential.
However, investors should consider broader market conditions, EV sector competitiveness, and financial disclosures before subscribing to the offer.
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