Ather Energy, the electric scooter company, is all set to launch its Initial Public Offering (IPO) on April 28. Even though the company hasn’t made a profit since it started in 2013, there’s a lot of excitement around the IPO on Dalal Street.
Founders Set to Earn Big
The IPO is worth ₹2,981 crore, out of which ₹355 crore is from the offer for sale portion. This means the founders — Tarun Mehta and Swapnil Jain — will sell 19.60 lakh shares.
The IPO price is set between ₹304 to ₹321 per share. The founders had originally bought their shares at just ₹21.09 per share. If the shares are sold at the upper price of ₹321, their return will be a whopping 1,422%.
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Company Still Making Losses
Despite being one of India’s top electric two-wheeler brands, Ather has never made a profit. It currently holds an 11.5% market share and is the third-largest EV scooter company by volume in FY24.
In its financial documents, Ather admitted it has been posting losses every year. In FY24, the company lost ₹1,059.7 crore, which is more than the ₹864.5 crore loss in FY23, and ₹344.1 crore in FY22. Also, its revenue slightly dropped in FY24 to ₹1,753.8 crore from ₹1,780.9 crore in FY23.
What Lies Ahead
Even though Ather’s sales are behind competitors like Ola Electric, TVS, and Bajaj Auto, it has big investors like Hero MotoCorp and Tiger Global, showing strong belief in its future.
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Ather plans to use the IPO money mainly to build a new factory in Maharashtra and pay off some debt.
The IPO will remain open for three days and will close on April 30. Ather shares will be listed on both BSE and NSE.
