Ather Energy announces IPO dates, breaking two-month lull in India's primary market
Electric scooter maker Ather Energy has announced its plans to go public, where it will launch its public offer on April 25. The issue will be available for public subscription till April 30. This will be the first mainboard IPO to hit the markets in over two months.
The IPO comprises a fresh equity sale of Rs 2,626 crore and also an offer for sale (OFS) of 1.1 crore shares. Under the OFS, promoters Tarun Sanjay and Swapnil Babanla will offload part stakes along with other corporate selling shareholders.
The price band for the public offer is not yet announced.
Funds raised from the IPO will be used for capital expenditure for establishment of an electric two-wheeler factory in Maharashtra, India, repayment of debt, investment in research and development, expenditure towards marketing and general corporate purposes.
Ather Energy is a pure play EV company that sells electric two-wheelers. The company also makes battery packs in-house using lithium-ion cells procured from suppliers and outsources the manufacturing of all other vehicle components, such as electronics and chassis.
Its electric two-wheeler portfolio comprises two product lines, the Ather 450 and the Ather Rizta, with seven variants. The Atherstack is in-house developed software, which provides features related to navigation, analytics, ride assistance, safety and productivity.
The company commands just about 11% market share in the electric two-wheeler market, as of December 2024. Given its premium positioning with plans to bridge key products, analysts expect the company to achieve a big leap in terms of growth
Launches like Rizta and a new scooter should materially expand the addressable market given that current volumes are constrained due to limited performance segment numbers in its flagship 450 series.
However, distribution too is skewed, where the South market comprises 48% of Ather experience centers, contributing 68% of the company's volumes in FY24.
Critical factors that can impact the company's plans and prospects include slow ramp-up and competition from large 2W OEM, and demand incentive scale-down.
According to the CRISIL Report, India is the largest global motorised two-wheeler market by volume with 18.4 million units sold in FY24, of which 16% were exports. In the nine months ended December 2024, exports accounted for 17% of the overall two-wheeler sales in India.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
15 minutes ago
- Hans India
CM to throw open PJR flyover today; traffic woes set to ease
Hyderabad: Chief Minister A Revanth Reddy will inaugurate Shilpa layout stage-II flyover named after the senior Congress leader late P Janardhan Reddy (PJR), connecting Outer Ring Road (ORR) and Kondapur on Saturday. The flyover was built under the Strategic Road Development Programme (SRDP) at a cost of Rs 182.72 crore. It is 1.2 km long and 24 meters wide with six lanes. Its specialty is that it is a third-level structure built on two existing flyovers. Below is the Gachibowli Junction flyover, above it is the Shilpa layout phase one flyover and now the phase two flyover, is being built on top of it. The traffic woes of commuters will be solved. Once the flyover is opened to the public, the traffic issues for entering the ORR from Kondapur will be alleviated, benefiting those heading to the IT corridor as well. The congestion at the Gachibowli junction will significantly reduce, resulting in considerable time saving for motorists. Also, motorists can reach Rajiv Gandhi International Airport (RGIA) in Shamshabad directly from Kondapur via Gachibowli without any traffic jams. On Friday, GHMC Commissioner RV Karnan, Serilingampally MLA Arekapudi Gandhi, and senior engineers conducted a detailed inspection of the flyover site and the adjoining public meeting venue. The commissioner stated that the construction of this flyover will effectively resolve traffic issues for those traveling to the Financial District, Madhapur, and Shamshabad. According to officials, the vehicular traffic would get relief at Gachibowli Junction by creating free movement of traffic from ORR towards Kondapur and vice-versa. It will also provide better connectivity between Hi-tech City and Financial district. As SRDP is laying a big foundation for infrastructure development in Hyderabad, the 23rd flyover will be made available through the project. Out of the total 42 works undertaken through SRDP, 37 works have been completed with this flyover, officials added. Moreover, the GHMC informed the railway officials to finalize the railway segment of the Falaknuma and Shastripuram ROBs projects within the next 2-3 months. Upon the completion of these two ROBs, 39 SRDP projects will also be finished. This will allow motorists to navigate the area without any traffic interruptions.
Time of India
19 minutes ago
- Time of India
Telangana HC cancels land allotment to International arbitration centre; says govt acted in haste, land grant violated rules
HYDERABAD: The Telangana high court on Friday set aside a 2021 govt order that allotted 3.70 acres of prime land in Hyderabad's upscale Raidurg area free of cost to the International Arbitration and Mediation Centre (IAMC). Tired of too many ads? go ad free now The centre was initiated and backed by former chief justice of India, Justice N V Ramana. A division bench of Justice K Lakshman and Justice K Sujana said the state govt displayed undue haste in the allotment. The previous BRS govt had allotted land on Dec 26, 2021. The bench was hearing two PILs challenging the allotment and the financial assistance of Rs 3 crore annually to the centre. At the time, the state had also decided to get all disputes arising from its tenders and other commercial deals necessarily referred to the centre. The bench ruled that the allotment violated the Telangana Land Revenue Act and the Andhra Pradesh Alienation of State Lands Rules, 1975, which mandate market-value payment for land given to private entities. The mediation centre, not being a statutory body or registered under the Companies Act, was deemed ineligible for free land. The bench, however, agreed with the view that the institutional arbitration must be promoted by govts and upheld the state's decision to give an annual financial assistance of Rs 3 crore and automatic reference of disputes. The judges added a rider that the state must review the performance of the centre every year after the passage of five years. HC flags centre's poor performance The two PILs were filed by Koti Raghunath Rao, an advocate from Hyderabad, and A Venkatarami Reddy, a retired govt employee. Senior counsel S Satyam Reddy appeared for one petitioner and questioned the state's support to the centre, which he described as a private trust. Low caseload a concern, says high court The Telangana high court, in its order expressed concern over the poor performance of the mediation centre. Tired of too many ads? go ad free now "We would like to express our concern regarding the performance of the IAMC and its future." the judges said. "The statistics of the IAMC were placed before this Court. It was stated that as on 29.01.2025 only 15 arbitration cases were conducted by the IAMC. Out of the said 15 cases, 11 arbitration cases were conducted pro-bono." The high court bench pointed out that overall only 57 mediation cases were conducted by the centre, of which 17 were pro-bono. "The abysmally low caseload raises concerns regarding the future sustenance of the IAMC on its own. The govt, as a part of its policy, can provide financial assistance to a new institution like the IAMC. However, such financial assistance to a private arbitral institution cannot be perpetual," the bench added.
New Indian Express
19 minutes ago
- New Indian Express
Bottle buy-back system a failure in Tasmac outlets in Coimbatore
COIMBATORE: The operation of unauthorised bars near Tasmac outlets has tied the hands of employees, as they are unable to affix the hologram sticker, which is necessary for the liquor bottle buy-back scheme, implemented by Tasmac after a Madras High Court direction. Sources said almost two-thirds of the 286 bars attached with outlets in the district have been functioning out of contract. A Tasmac outlet supervisor attached to Coimbatore South, who did not wish to be named, said, "Bar contractors can take the bottles to the bar and store them and sell it to anyone. As unauthorised bars cannot store and sell bottles, those should be maintained by employees and handed over to the firm which has got the contract. As most bars attached to outlets in the district are operating without renewing their contract, bottles are not be stored in the bars. That makes employees refrain from sticking the Rs 10 hologram." "Despite not pasting stickers and collecting empty bottles, supervisors of the shops are required to pay Rs 3 per bottle to the contractor, who is supposed to collect empty bottles. Without performing their duty, the private firm receives money from Tasmac, which is borne by employees of the outlets," he added. Officials contact the supervisors and instruct them to clear the total amount, which would come into lakhs each month, leaving the salespersons with no choice, other than to collect an extra of Rs 10 per bottle from customers, he further said. A John, the secretary of Tasmac employees union affiliated to CITU said, "The buy-back system was implemented to prevent disposal of empty bottles in open areas as per the High Court's order. However, the system is not followed in outlets due to structural level failure in the administration. Without correction of flaws, the buy-back system would not attain its objective and salespersons and customers will have to bear the brunt." Speaking to TNIE, R Govindharasu, senior Regional Manager of Tasmac, Coimbatore said, "The buy-back system was implemented partially in the district. We have instructed the employees to follow the norm. I will also look into the matter."
