Ather Energy IPO

About Ather Energy Ltd IPO

Ather Energy Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹3100 crores, the offer for sale consists of up to 22,000,766 equity shares with a face value of ₹1 each.

Objectives of Ather Energy Ltd IPO

The company proposes to use the net proceeds from the IPO for:

• Capital expenditure to be incurred by the company for the establishment of an E2W factory in Maharashtra
• Repayment/ prepayment, in full or part, of certain borrowings availed by the company
• Investment in research and development
• Expenditure towards marketing initiatives
• General corporate purposes

Industry Outlook

The electric two-wheeler retail rose at a sharp growth pace of 101% CAGR in the last 6 years. If the government continues with the demand incentive (FAME, EMPS or an equivalent alternate form) at least for the next 1 year (till fiscal 2026), CRISIL MI&A expects the EV retail to rise at a healthy pace of ~41% CAGR and reach volumes of ~10.2 million in fiscal 2031.

Company Information

Ather Energy Ltd is a pioneer in the Indian electric two-wheeler (“E2W”) market. The company is a pure-play EV company that designs all its products ground up in India. According to the CRISIL Report, in FY 2024, the company was the third-largest player by volume of E2W sales.

Risks of Ather Energy Ltd IPO

• Ather’s future growth is dependent on the demand for and adoption of electric two-wheelers. If the market does not develop as it expects, or develops at a speed that is slower than anticipated, its business, prospects, financial condition and operating results will be affected.

• The company currently derives its revenue predominantly from the sale of limited electric two-wheeler models. If its electric two-wheelers are not well-received by the market, its business and future prospects could be adversely impacted.

• The retail prices of the company’s electric two-wheelers are susceptible to a reduction or elimination of government incentives or the ineligibility of its electric two-wheelers for such incentives. The increased retail price could affect customer demand and in turn, adversely impact its business and prospects.

• Any disruptions in the availability and any changes in the pricing and quality of lithium-ion cells could cause significant disruptions to and adversely impact its business operations.

IPO Registrar and Book Running Lead Manager

Link Intime India Private Limited is the registrar of the Ather Energy Ltd IPO. The book running lead managers are:

• Axis Capital Limited
• HSBC Securities and Capital Markets (India) Private Limited
• JM Financial Limited
• Nomura Financial Advisory and Securities (India) Private Limited

Business Model

Ather Energy Ltd designs and develops E2Ws, battery packs, charging infrastructure, associated software and accessories. It manufactures its battery packs and assembles E2Ws in-house. It sold 109,577 E2Ws in FY 2024.

Company Growth Trajectory

Despite being positioned at premium prices, Ather’s products recorded an increase in sales volumes to 109,577 in FY 2024 from 92,093 in FY 2023 and 23,402 in FY 2022. Its revenue from operations, which stood at ₹ 408.90 crores in FY 22 grew to ₹1753.80 crores in FY 24. Its E2W market share increased from 7.9% in FY 22 to 11.5% in FY 24.

How to Check Allotment Status of Ather Energy Ltd IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Ather Energy Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Link Intime Private Ltd:

• Visit the website of Link Intime Private Ltd
• Choose ‘Public Issues’ from Investor Services dropdown
• Choose the name of the company from ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How to Apply for Ather Energy Ltd IPO?

Here are the steps to apply for Ather Energy Ltd IPO:

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.