Ather Energy IPO Overview
Hello friends, welcome to your channel! Today we’ll be discussing the latest updates on Ather Energy’s IPO. Ather Energy, the Bengaluru-based electric two-wheeler company, is preparing for its IPO launch, which is expected to take place in April 2025.
Latest Update: Equity Conversion Approved
Recently, Ather Energy received approval for the conversion of compulsory convertible preference shares (CCPS) into regular equity shares. This equity conversion is a critical step before filing the Red Herring Prospectus (RHP), the final step before the IPO. The approval for equity conversion was granted on March 8, 2025.
Before filing the RHP, all CCPS shares need to be converted into regular equity shares as per SEBI regulations. The total CCPS issued amounted to 1.73 crore, which has now been converted into 24.04 crore regular equity shares. This conversion happened in a ratio of approximately 1:1, which is typical for these types of equity conversions.
What is Compulsory Convertible Preference Shares (CCPS)?
CCPS are special shares given to investors, which must be converted into regular equity shares at a later date. This process was completed on March 8, 2025, allowing the company to move forward with filing the RHP for its IPO.
IPO Size and Details
Ather Energy’s IPO will consist of a fresh issue of ₹3,100 crores along with an offer for sale of 2.2 crore shares. The total size of the IPO is expected to be significant, but the exact details of the offer for sale will be confirmed when the RHP is filed.
Who is Selling Shares in the IPO?
The shareholders selling their stakes include Tiger Global, Caladium Investments, National Investment Infrastructure Fund (NIIF), Binny Bansal's Three State Ventures, and Ather’s co-founders Tarun Mehta and Swapnil Jain. However, Hero Motocorp will not be selling any shares in this offering.
Pre-IPO Fundraising
Before launching the IPO, Ather Energy plans to raise ₹620 crores through a pre-IPO placement. This move is aimed at strengthening the company's financial position ahead of the public offering.
IPO Timeline and Expected Launch
If all goes according to plan, Ather Energy’s IPO is expected to launch in April 2025, with hopes for favorable market conditions. The filing of the RHP will follow shortly, and investors can expect the IPO to launch within one to two weeks after that. The date may change depending on market conditions.
How to Invest in Ather Energy IPO?
To invest in the Ather Energy IPO, you’ll need a Demat and trading account with a registered stockbroker. Once the IPO opens, you can apply for shares through the broker or online platforms providing IPO services. Keep an eye out for the official announcement for the opening date and other details.
Is Ather Energy a Good Investment?
As with any IPO, it’s crucial to conduct thorough research before investing. Ather Energy is a leading player in the electric two-wheeler market, which is expected to grow significantly in the coming years. However, like any investment, it comes with risks. Investors should assess the company’s financial health and market conditions before making a decision.