Ather Energy IPO retail portion fully booked on day 2: All you need to know about the company's dividend policy from RHP

Ather Energy IPO has received 25% subscription so far on the second day of bidding on Tuesday, April 29.

The initial public offering got bids for 1,31,15,934 shares against 5,33,63,160 equity shares on offer, as per the consolidated data available on the National Stock Exchange until 2:28 pm.

The retail individual investors (RIIs) portion fetched 1.03 times subscription, as investors applied for 99,90,050 shares against 97,34,319 shares on offer.

The quota for the non-institutional investors (NIIs) category received 19% of subscriptions. It received bids for 28,29,828 shares compared to 1,46,01,478 shares on offer.

Ather Energy's ₹2,981.06 crore issue, with a price range of ₹304-₹321 apiece, will conclude on Wednesday, April 30.

It is a fresh issue of ₹2,626 crore as well as an offer-for-sale (OFS) of 1.1 crore equity shares.

Ather Energy IPO: Dividend policy

In its red herring prospectus (RHP), the declaration and payment of dividends on equity shares, if any, will be recommended by Ather Energy's Board and approved by its shareholders.

The electric two-wheeler manufacturer "has not declared and paid any dividend on the equity shares and preference shares of our company from January 1, 2025 until the date of this Red Herring Prospectus, and during the financial years ended March 31, 2024, March 31, 2023, March 31, 2022, and during the nine months ended December 31, 2024."

In the risk factors on the RHP under the section "We may not be able to pay dividends in the future", the company said the future dividend, if any will depend on factors like earning stability, free cash flow, borrowing capacity, profitability, macroeconomic environment, and market conditions.

Ather Energy designs and manufactures electric two-wheelers, battery packs, and software.

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