Ather Energy IPO: Promoters, investors to make handsome gains; here’s what their investment will be worth

Ather Energy IPO: The promoters and early investors of the electric two-wheeler manufacturer are set to gain handsomely as the company launches its initial public offering on Monday, April 28.

The ₹2,980.76 crore initial share sale, with a price band of ₹304 to ₹321 per share, is a fresh issue of ₹2,626 crore as well as an offer for sale of 1.11 crore shares. The offer will conclude on April 30.

Ather Energy IPO: Here's how much investors will gain

According to the red herring prospectus, co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain hold 20,517,732 shares each, or 6.81% stake. Their average weighted cost of acquisition per equity share was ₹21.09 per share. Their respective holdings will be worth ₹658.61 crore at the upper end of the price band.

Caladium Investment Pte Ltd, which holds 46,514,376 shares at an average acquisition cost of ₹204.24 per share, will make ₹1,493.11 crore at the upper price band.

With an average acquiring cost of ₹183.71 per share, National Investment and Infrastructure Fund II holds 20,412,027 shares. The investment will be valued at more than ₹655.22 crore.

Hero MotoCorp Limited, Ather's largest shareholder, holds a 38.19% stake, or 11.51 crore shares. Its investment will be valued at over ₹3,694 crore.

Ather Energy IPO: Objectives, lot size, and key dates

The net proceeds from the issue will be used for the following objects:

• Capital expenditure to establish an electric two-wheeler factory in Maharashtra
• Repay certain borrowings
• Invest in research and development
• Marketing initiatives
• Corporate general purposes

Investors can place bids for a minimum of one lot or 46 shares worth ₹13,984.

The allotment of Ather Energy will be finalised on May 2, and the listing on the BSE and the NSE will take place on May 6.

JM Financial, Nomura Financial Advisory and Securities (India), HSBC Securities & Capital Markets, and Axis Capital are the issue's book-running lead managers, while MUFG Intime India Pvt Ltd is the registrar.