Ather Energy’s IPO opened on April 28.
The company is one of India’s largest electric two-wheeler manufacturers and will become the second electric vehicle maker to be listed in the stock market, after Ola launched its IPO last year.
Investors looking to capitalize on India’s growing electric two-wheeler market can benefit from analyzing this IPO.
Price Band of Shares
The price band for Ather Energy’s IPO is set at Rs 304-321 per share. At the upper end of this range, the company’s market value will be Rs 11,955 crore.
Ather Energy’s product pricing is positioned at a premium level. The company currently offers two product lines: the Ather 450 and Ather Rizta, both designed for customers seeking electric scooters for family use.
Plans for Expansion with IPO Funds
Ather Energy plans to use the funds raised from the IPO to boost its production capacity. After completing Phase 2, the company’s production capacity will increase to 14.2 lakh units.
Ather is known for several innovations in the electric two-wheeler space, including a touchscreen dashboard with navigation, 3G SIM connectivity, aluminum chassis, fast charging, and guide-me-home lights.
The company also established India’s first fast-charging network, Ather Grid.
Innovations by Ather Energy
Ather has introduced several groundbreaking features, such as over-the-air software updates and ride statistics.
It was also the first company in India to launch a high-speed electric scooter with a top speed of 80 km/h. Ather also created a smart helmet called Halo.
The company is investing heavily in research and development (R&D) to stay ahead in the competitive electric vehicle market, especially with new players like Ola, Okinawa, and Ampere entering the market.
Should You Invest?
In terms of valuation, Ather’s IPO is priced at 5.3 times its estimated market capitalization to sales ratio for FY27, which is higher than other companies.
Considering the strong competition and uncertain order book, this IPO may not appear as attractive. It carries significant risk, similar to betting on a startup.
Therefore, investors should carefully consider the potential risks before deciding to invest.
Ola’s Performance
Ola Electric launched its IPO in August last year, offering shares at Rs 76 each. As of April 28, the stock was trading at Rs 49.86, showing a decline in value.
Despite being the largest electric two-wheeler company in India by sales, Ola’s stock has not performed well, leading to losses for investors.
