Ather Energy Limited is coming up with an IPO consisting of a fresh issue of shares worth INR 3,100 crores and an offer to sell 2.20 crore existing shares. The company aims to invest in an E2W factory, repay borrowings, R&D, marketing, and corporate purposes. 

Ather Energy IPO – Important Dates 

Ather Energy Limited IPO – Company Profile 

Ather Energy Limited, a pioneer in India’s electric two-wheeler market, designs, manufactures and assembles E2Ws, battery packs, and charging infrastructure. It offers premium, performance-focused products like the Ather 450 and Ather Rizta. 

As a pioneer in the E2W market, Ather Energy Limited integrates fast charging infrastructure, accessories, and Atherstack software, setting new standards in performance, efficiency, and user experience through its innovative, vertically integrated approach. 

With strong in-house R&D and manufacturing capabilities, Ather Energy Limited focuses on innovation, sustainable practices, and capital efficiency. The company’s expanding production capacity, supported by a robust ESG strategy, drives its growth and operational excellence. 

Ather Energy Ltd IPO Fundamental Analysis 

Ather Energy Limited’s financial analysis reveals a mixed performance. Revenue shows significant growth, while liabilities rise and profitability declines. The company faces challenges with liquidity, inventory turnover, and declining returns on equity and EPS. 

• Revenue Trend: The revenue increased from ₹4,089 million in March 2022 to ₹17,809 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 17,538 million. 
• Equity and Liabilities: Liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹(3,441) million in March 2022 to ₹(10,597) million by March 2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹(27) in March 2022 to ₹(47) by March 2024, reflecting lower earnings per share for investors. 

• Return on Net Worth (RoNW): The RoNW has decreased from (153)% to (194)%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Check out the other upcoming IPOs this month:

Ather Energy IPO Financial Analysis 

Ather Energy Limited IPO Peer Comparison 

Ather Energy Limited shows steady revenue growth, while other major players like Hero MotoCorp, Bajaj Auto, and TVS Motors maintain strong performance with higher profitability and returns, surpassing Ather in key financial metrics. 

Ather Energy Ltd IPO Objective 

The main objective of Ather Energy Limited is to establish an E2W factory in Maharashtra, repay borrowings, invest in research and development, and allocate funds towards marketing initiatives to drive growth and innovation. 

1. Capital expenditures to be incurred by the company for the establishment of an E2W factory in Maharashtra, India: The company intends to utilise INR 927.2 crores from the net proceeds for capital expenditures towards establishing Factory 3.0 in Maharashtra, with a production capacity of 0.5 million E2Ws per year, completing Phase I by 2027. 

2. Repayment/ prepayment, in full or part, of certain borrowings availed by the company: The company plans to utilise INR 378.2 crores from the Net Proceeds to repay or prepay outstanding borrowings, aiming to reduce indebtedness, lower debt servicing costs, and improve the debt-to-equity ratio. 

3. Investment in research and development: The company aims to utilise INR 750 crore over the next three years for R&D investments, focusing on manpower and non-manpower costs and advancements in vehicle platforms, powertrains, batteries, software, charging infrastructure, and accessories. 

4. Expenditure towards marketing initiatives: The company plans to utilise INR 300 crore over three years for marketing initiatives, including brand building, product promotions, and community engagement. These initiatives aim to increase brand awareness, drive EV adoption, and expand consumer reach. 

5. General corporate purposes: The company will deploy funds for general corporate purposes, including strategic initiatives, funding growth opportunities, working capital requirements, maintenance of plants and machinery, support functions, meeting corporate difficulties, and other business needs. 

Ather Energy IPO Risks And Challenges 

Ather Energy Limited’s risk includes operating losses due to heavy manufacturing, distribution, and infrastructure investments. The company’s profitability depends on scaling operations and market expansion, with growth hindered by limited EV adoption, competition, and infrastructure challenges. 

• The company generates revenue primarily from electric two-wheeler sales, supplemented by accessories and services. It faces operating losses due to manufacturing, distribution, and infrastructure investments, and future profitability is dependent on scaling operations and market expansion. 

• The growth of demand for E2Ws depends on the overall adoption of EVs in India. Limited awareness, alternative technologies, and infrastructure challenges could slow EV adoption, impacting the company’s business, financial condition, and growth. 

• The company faces intense competition from established E2W manufacturers and traditional automotive players. Its success depends on designing, manufacturing, and marketing quality vehicles. Failure to meet market demands or control costs could impact profitability. 

Ather Energy Ltd IPO – Industry & Market Potential 

The two-wheeler industry is expected to grow at a ~7% CAGR, reaching 29-30 million units by fiscal 2031, driven by R&D, EV expansion, and government support. The E2W segment may grow at ~41% CAGR, reaching 35-40% EV penetration. 

Charging infrastructure is key to EV growth. The number of public E2W chargers is expected to grow at a substantial CAGR of 35-38% from fiscal 2024 to 2031, supporting increased adoption of electric two-wheelers. 

Electric two-wheeler sales grew at a 101% CAGR over the last six years. With continued government support, incentives, and infrastructure growth, EV retail sales are projected to rise at 41% CAGR, reaching 10.2 million units by 2031. 

Ather Energy Limited IPO – Type of Offer 

Ather Energy Limited plans a fresh issue of shares, seeking INR 3,100 crores to invest in an E2W factory, repay borrowings, R&D, marketing, and corporate purposes. Additionally, the company proposes an offer to sell 2.20 crore existing shares. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 3,100 crores. The company intends to utilise the proceeds from the fresh issue to invest in an E2W factory, repay borrowings, R&D, marketing, and corporate purposes.
2. Offer for sale: Ather Energy Limited is offering to sell 2.20 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

Ather Energy IPO Offer Size 

The offer size of Ather Energy Limited is yet to be announced, consisting of a fresh issue of shares worth INR 3,100 crores and an offer to sell 2.20 crore existing shares. The company aims to invest in an E2W factory, repay borrowings, R&D, marketing, and corporate purposes. 

Ather Energy Limited IPO Allotment Structure 

Ather Energy Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. A portion is set aside for eligible employees. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Eligible Employees: A portion is set aside for eligible employees. 

How to apply for Ather Energy IPO?

To apply for the Ather Energy Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Ather Energy Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Ather Energy Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Ather Energy IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Ather Energy Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Ather Energy Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Ather Energy Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Ather Energy Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Ather Energy Ltd IPO Offer Registrar

The registrar for the Ather Energy Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli (West)

Mumbai 400 083

Maharashtra, India

Tel: +91 810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in 

Ather Energy IPO – FAQs