Aether Energy IPO: A Detailed Analysis of India's Upcoming Electric Powerhouse
Discover the key details of Aether Energy's highly anticipated IPO, including the issue size, price band, and much more.
Updated : 2 months ago
Aether Energy IPO: The Next Big Thing in Electric Mobility
Aether Energy is one of India's leading electric vehicle manufacturers, known for its commitment to sustainability and innovation. With its upcoming IPO, the company aims to solidify its presence in the EV market and continue its growth trajectory. Investors are eagerly awaiting details as this IPO represents a significant opportunity in the burgeoning electric vehicle industry in India.
Company Overview
Founded in 2018, Aether Energy has rapidly emerged as a key player in the electric mobility sector. The company’s flagship product includes electric two-wheelers and electric scooters, which have garnered considerable market attention. Aether Energy’s focus on technology-driven, energy-efficient vehicles makes it a pioneer in the sustainable transportation revolution.
IPO Details
The Aether Energy IPO is expected to raise around ₹1,500 crore through a combination of fresh issues and an offer for sale (OFS). The price band is expected to range between ₹200 and ₹220 per share, with a minimum lot size of 50 shares. The IPO is anticipated to open for subscription in November 2024.
Use of Proceeds
The funds raised through the IPO will be used to expand Aether Energy's manufacturing capacity, invest in research and development for new electric vehicles, and strengthen its charging infrastructure across India.
Grey Market Premium (GMP)
As of now, the Grey Market Premium (GMP) for the Aether Energy IPO is trading around ₹30-35 per share, reflecting strong investor interest in the company.
Why Invest in Aether Energy?
Aether Energy operates in one of the fastest-growing industries in India—electric vehicles. With increasing environmental concerns and governmental incentives for EV adoption, Aether is strategically positioned to capitalize on this shift. The company's continuous investment in R&D and its robust manufacturing capability make it an attractive proposition for long-term investors.
Expected Listing Gains
Based on current GMP and strong subscription numbers, analysts expect the Aether Energy IPO to list at a premium of 15-20%, making it a good short-term investment opportunity as well.
How to Apply for Aether Energy IPO
You can apply for the Aether Energy IPO through ASBA (Application Supported by Blocked Amount) via your bank, or through online brokerage platforms like Zerodha, Groww, and Upstox.
Ather Energy IPO: Frequently Asked Questions
- When is the Ather Energy IPO expected to launch?
The Ather Energy IPO is expected to launch in the first half of 2025.
- What is the price band for the Ather Energy IPO?
The price band for the Ather IPO has not been specified yet. Details will be announced closer to the IPO date.
- How much capital is Ather Energy looking to raise?
The total IPO size is expected to be ₹4,500 crore, including a fresh issue of ₹3,100 crore and an offer for sale of 22 million shares.
- What will the proceeds of the Ather Energy IPO be used for?
The proceeds will be used for capital expenditure (₹927.2 crore for a new factory in Maharashtra), research and development (₹750 crore over five years), debt repayment (₹378.2 crore), marketing (₹300 crore), and general corporate purposes.
- What is the Grey Market Premium (GMP) for the Ather Energy IPO?
The GMP has not been disclosed yet, but investor interest is expected to be strong due to Ather's market position.
- Is Ather Energy a good investment?
As one of the top four electric scooter manufacturers in India, Ather Energy has a promising market position with a 12% market share. However, investors should consider the company’s net loss of ₹1,060 crore in 2024 before making a decision.
- How can I apply for the Ather Energy IPO?
You can apply for the IPO through the ASBA method via your bank or through online brokerage platforms like Zerodha and Groww.
- What is the lot size for the Ather Energy IPO?
The lot size has not been disclosed yet, but details will be provided closer to the launch.
- What are the expected listing gains for the Ather Energy IPO?
While no specific figures are available, market analysts expect significant listing gains due to Ather's strong position in the electric vehicle industry and the growing demand for EVs in India.
- What industry does Ather Energy operate in?
Ather Energy operates in the electric vehicle (EV) industry, focusing on electric two-wheelers like the Ather 450 and Ather Rizta.
- Will Hero MotoCorp shareholders get any special allocation?
Yes, Hero MotoCorp shareholders will have a reserved quota in the Ather Energy IPO, subject to an upper cap.
- Who are the key shareholders selling their stake in the IPO?
Key shareholders selling their stake include Tarun Sanjay Mehta, Swapnil Jain, Tiger Global, GIC, Binny Bansal’s Three State Ventures, National Investment and Infrastructure Fund (NIIF), and Caladium Investment Pte Ltd. Hero MotoCorp will not be selling any shares.
