Ather Energy IPO: Latest GMP and Details Ahead of Rs 3,000 Crore Public Listing

Ather Energy, a leading electric two-wheeler manufacturer, is set to launch its Initial Public Offering (IPO) on April 28, 2025. This marks the first mainboard public listing in over two months. With a total issue size of ₹2,980.76 crore and a market capitalization of ₹11,955.66 crore, Ather Energy is poised to take its business to the next level through public listing. The IPO will remain open for subscription until April 30, 2025.

IPO Structure: A Book-Built Issue

The Ather Energy IPO will be a book-built issue, which includes both a fresh issue and an offer for sale (OFS). The fresh issue will consist of 8.18 crore equity shares worth ₹2,626 crore. Alongside, the OFS will involve 1.11 crore shares worth ₹354.76 crore, which will be sold by existing shareholders. It's important to note that the company will not receive funds from the OFS portion.

Price Band and Lot Details

The price band for Ather Energy's IPO is set between ₹304 and ₹321 per share. The minimum bid lot for retail investors is 46 shares. This means the minimum investment for retail investors will be ₹13,984 at the lower end of the price band. For those bidding at the upper price band (₹321), the minimum investment would be ₹14,766.

Investor Categories: Different Requirements for Retail and Non-Institutional Investors

Retail investors will need to place bids in multiples of 46 shares, with an investment ranging from ₹13,984 to ₹14,766 depending on the price band they choose. However, non-institutional investors (NIIs) will have higher bidding requirements. Small NIIs (sNIIs) must bid for at least 14 lots (644 shares), amounting to ₹2,06,724. Big NIIs (bNIIs) must apply for at least 68 lots (3,128 shares), which will total ₹10,04,088.

Lead Managers and Registrar

The lead managers for the Ather Energy IPO are Axis Capital Limited, HSBC Securities and Capital Markets (India) Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd. The registrar for the IPO is Link Intime India Private Ltd, which will handle allotments and refunds for investors.

Grey Market Premium (GMP)

As of April 25, 2025, the grey market premium (GMP) for the Ather Energy IPO stands at ₹5. This suggests that the estimated listing price could be ₹326, based on the upper end of the price band of ₹321. The expected gain per share is around 1.56%. However, it's important to understand that GMP values are unofficial and fluctuate depending on demand in the grey market.

Use of IPO Funds: Expansion and Growth Plans

The funds raised from the fresh issue will be utilized for key growth initiatives. Ather Energy plans to use the capital for setting up a new electric two-wheeler (E2W) manufacturing facility in Maharashtra. The funds will also be used to repay certain borrowings and invest in research and development (R&D) activities to enhance its product offerings. Additionally, the company aims to spend on marketing to strengthen its position in the growing electric vehicle market.

IPO Allotment and Listing Schedule

The allotment of shares for the Ather Energy IPO is expected to be finalized on May 2, 2025. Once allotments are complete, refunds for unallocated shares will begin, and successful applicants will see their shares credited to their demat accounts. The shares of Ather Energy are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on May 6, 2025.

Conclusion: A Big Step for Ather Energy's Future

Ather Energy's IPO offers a significant opportunity for investors to get involved in the rapidly growing electric vehicle market. With a promising future ahead, Ather's public listing marks a major milestone in its journey. As the IPO date approaches, all eyes are on the subscription trends, GMP, and the potential growth of the company in the Indian electric two-wheeler sector.