Ather Energy to make its market debut today. Check GMP ahead of listing

Synopsis

Ather Energy, a starring Indian EV brand, is acceptable to debut connected the NSE and BSE aft a humble IPO subscription. Despite beardown marque equity and tech credentials, the institution faces challenges with profitability, reporting a important nett nonaccomplishment for FY24. Its aboriginal banal show depends connected scaling profitably and defending marketplace stock successful a competitory EV market.

Shares of electric two-wheeler shaper Ather Energy Limited are acceptable to debut connected the NSE and BSE today, pursuing its Rs 2,980 crore archetypal nationalist offering (IPO). The company, which has emerged arsenic 1 of India’s starring premium EV brands, had received a subscription of conscionable implicit 1x, indicating muted enthusiasm from organization and retail investors.

In enactment with the humble response, the banal is commanding a grey marketplace premium (GMP) of astir 3%, signaling cautious optimism up of its listing.

The IPO comprised a caller contented worthy Rs 2,626 crore and an connection for merchantability of Rs 354 crore, with a terms set of Rs 304–321 per share. At the precocious end, the contented implied a marketplace capitalisation of astir Rs 12,300 crore. Ather’s IPO proceeds volition beryllium utilized to money its caller mill successful Maharashtra, repay debts, and put successful R&D and marketing.

Founded successful 2013 by IIT-Madras alumni Tarun Mehta and Swapnil Jain, Ather Energy is simply a vertically integrated EV institution with a beardown in-house plan and tech stack.

Its existent merchandise portfolio includes the Ather 450 and the recently launched Ather Rizta, some positioned arsenic tech-forward, performance-oriented scooters. The institution besides runs India’s largest two-wheeler fast-charging network—Ather Grid—with implicit 2,600 chargers crossed much than 300 cities.

Despite its tech credentials, Ather’s financials overgarment a representation of a institution inactive successful its concern phase. For FY24, it reported a nett nonaccomplishment of Rs 1,059 crore connected gross of Rs 1,754 crore. While its EBITDA borderline improved somewhat to -36%, the institution remains successful the red.

Analysts enactment that its precocious R&D and organisation expenses, on with terms contention successful the EV space, person kept profitability elusive.

That said, Ather’s portion income crossed 1 lakh successful FY24, making it 1 of the apical 4 electrical scooter makers successful India. It plans to treble down connected manufacturing with the improvement of Factory 3.0 successful Chhatrapati Sambhajinagar, which volition instrumentality its full yearly capableness to 1.4 cardinal units erstwhile complete.

While Ather Energy enjoys beardown marque equity and first-mover vantage successful India's EV transition, its listing comes and geopolitical uncertainties. The sustained show of the banal volition hinge connected its quality to standard profitably and support marketplace stock successful an progressively crowded EV market.

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