Upcoming IPO Alert: Ather Energy IPO Tentative Date, Size, Valuation; Hero MotoCorp Holds 37% Stake

One of India's most promising electric two-wheeler manufacturers, Ather Energy is reportedly set to file its Red Herring Prospectus (RHP) this week for its much-anticipated Initial Public Offering (IPO). However, the company is reducing the IPO size and valuation, reflecting the broader caution in the market.

Ather Energy IPO Size and Valuation

Ather Energy's initial estimate of Rs 3,500 to 3,700 crore is expected to drop to between Rs 2,900 and 3,200 crore, according to various industry estimates. It has been projected that the post-money valuation will be approximately Rs 12,800 crore, which is a 25-30% dip from the original projections and even more from the Rs 17,000-20,000 crore range.

Tentative Dates for Anther Energy IPO

Ather received SEBI's approval in December 2024 and now plans to launch its IPO on or around 23 April 2025, depending on market conditions and regulatory clearance, as cited at IPO Central. The company had initially scheduled the issue for early April.

Heromotocop Shareholder Quota in Ather Energy

Hero MotoCorp, which owns 37% of Ather, will not sell any shares in the offer, but some of the original founders and investors will leave. The shareholder reservation section will increase the odds of allocation for Hero MotoCorp's current shareholders, even if they only own one share. Given the brand trust and synergy between the parent company and the EV startup, this shareholder reservation mechanism will draw in retail investors who currently own Hero MotoCorp shares.

Ather Energy IPO: Tentative Pricing Band and Peer Comparison

Ather is presently India's fourth-largest producer of electric two-wheelers. With competitors like Ola Electric, TVS Motor Company, and Bajaj Auto in the competitive electric mobility market, Ather is setting its prices cautiously. Although the price range has not been disclosed, preliminary speculation points to a range of Rs 310 to 330 per share.

About Ather Energy

Ather Energy was founded in 2013 by Tarun Mehta and Swapnil Jain which has production facilities in Hosur, Tamil Nadu, and Whitefield, Bangalore. The company manufactures electric scooters such as the Ather 450 Apex, Ather 450S, Ather 450X, Ather 450X Pro, and Ather Rizta. Ather is known for its innovative, high-quality engineering, and clean design features, which appeal to the aspirational urban Indian consumer.

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