Underneath the OFS, promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will offload their half stakes. Different promoting shareholders embrace Tiger World, IIT Madras incubation cell and few others.
Funds raised from the IPO will probably be used for capital expenditure to be incurred by the corporate for institution of an electrical two-wheeler manufacturing facility in Maharashtra, compensation of debt, funding in analysis and improvement, expenditure in the direction of advertising initiatives and common company functions.
The corporate is backed by main auto participant Hero MotoCorp and in addition competes with Ola Electrical within the two-wheeler listed area.
Key particulars about Ather Vitality IPO
Worth band: Rs 304-321
GMP: 1% over the problem value
Lot measurement: 46 shares
Ought to buyers subscribe to Ather Vitality IPO?
Most analysts say ‘Sure.’ Ather Vitality is strongly positioned in India’s fast-growing electrical two-wheeler market, backed by its early-mover benefit, premium product positioning, and arobust in-house R&D and know-how ecosystem.
The corporate’s current launches, just like the Ather Rizta, have helped increase its buyer base. Its upcoming Manufacturing facility 3.0 will doubtless improve manufacturing capability from 420,000 to 1.42 million items by FY27, whereas ongoing cost-cutting and R&D investments are anticipated to enhance margins additional.
“On the higher band of Rs 321, the problem is valued at a EV/gross sales ratio of 8x, primarily based on a 9MFY25 gross sales of Rs 1579 crore. We’re recommending a Subscribe for itemizing acquire ranking for this concern,” stated Arihant Capital.
Ather Vitality: Firm outlook
The administration of the expects industry-wide electrical two-wheeler gross sales in India to develop at round 41–44% CAGR till FY31, and the corporate goals to faucet into this by rising its product vary, decreasing prices by localisation and new battery applied sciences, and increasings oftware monetisation alternatives.
Whereas the discount of presidency subsidies has been a problem, the corporate has managed to enhance its profitability metrics and cut back subsidy dependence.
E-book operating lead managers
Axis Capital, HSBC Securities, JM Monetary, Nomura Monetary Advisory are managing the IPO.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)
