Electric scooter maker Ather Energy is launching its Initial Public Offering (IPO) from April 28 to April 30. This public listing is expected to benefit early investors and employees with stock options.
The company has set aside 16.23 million shares under its Employee Stock Option Plan (ESOP). At the IPO’s upper price band of ₹321 per share, these stock options are valued at about ₹530 crore (roughly $62 million).
Ather issued 4.6 million ESOPs between the start of FY25 and the filing of its red herring prospectus. While this is a big opportunity for employees, they will need to wait a few months to a year before selling their shares, depending on their vesting period.
Key Details of the IPO:
- Total issue size: ₹2,980.7 crore
- Fresh issue: ₹2,626 crore
- Offer for sale (OFS): ₹354.76 crore
- Minimum bid: 46 shares, costing ₹13,984
The IPO follows a book-building process with:
- 75% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for retail investors
Tiger Global plans to sell 4,00,000 shares during the OFS. It originally bought these at an average price of ₹38.58 per share, giving it a return of 8.3X. Caladium Investment is also expected to make a 57% return.
Business Performance:
In the first nine months of FY25, Ather sold 1,08,000 vehicles and earned ₹1,578.9 crore in revenue. However, it posted a loss of ₹579.6 crore during the same time.
For the full year ending March 2024, the company generated ₹1,753 crore in revenue and reported a net loss of ₹1,062 crore.
Despite the losses, Ather’s strong revenue growth and increasing ESOP value point toward solid long-term potential. With India’s electric vehicle sector growing fast, the IPO could help Ather scale even further.
