Ather Energy sets price band at Rs 304-321 per share; market to see first IPO in two months next week

Electric vehicle maker Ather Energy has set a price band of Rs 304-321 per share for its initial public offering, which will open for subscription on April 28. This marks India’s first IPO in nearly two months, and industry observers expect most companies to stay on the sidelines until they see how Ather’s issue is received and how its shares perform upon listing.

The anchor book will open on April 25, the IPO subscription window will run from April 28 to April 30, and the basis of allotment will be finalized on May 2, while refunds initiated and equity credited by May 5, and the stock is scheduled to list on exchanges on May 6.

The offer comprises a fresh issue of Rs 2,626 crore and an offer for sale of up to 1.1 crore shares, which at the upper end of the band translates to roughly Rs 354.76 crore. The total issue size has been revised down to around Rs 2,980.76 crore from an earlier plan of Rs 4,000 crore, implying a post-issue valuation of about Rs 11,956 crore. In September, Ather Energy filed its draft red herring prospectus, aiming for a $2.5 billion IPO; as markets corrected, that valuation was trimmed to $2.4 billion.

“From an incoming investor’s perspective, multiple valuation cuts and a last-minute downsizing of the fundraise suggest an urgent rush to list, which may not inspire confidence,” said Jayant Mundhra, an independent research analyst. “While I could be mistaken, a company that appears desperate to go public at any cost raises red flags.”