Ather Energy’s Investors Set for Multi-Bagger Returns Ahead of IPO

Ather Energy, the electric two-wheeler manufacturer, is gearing up for its public offering next week, with promoters and early investors set to realize significant returns. The IPO-bound company is set to offer substantial gains to its key investors, including co-founders Tarun Mehta and Swapnil Jain, as well as institutional backers like Tiger Global, GIC, and the National Investment and Infrastructure Fund (NIIF).

Contents

Ather Energy’s Investors Set for Multi-Bagger Returns Ahead of IPO Institutional Investors Set to Record Strong Gains Hero MotoCorp’s Dominant Stake Ather Energy’s IPO Details and Financials

Co-founders’ Stake and Valuation

The co-founders, Tarun Mehta and Swapnil Jain, each hold a 6.81% stake in the company, amounting to 2.06 crore shares. Their average acquisition price is estimated at ₹43.27 per share, and their holdings at the IPO’s price band are valued at approximately ₹659 crore.

Highlights

Co-founders hold 6.81% stake, valued at ₹659 crore
Average acquisition price of ₹43.27 per share

Institutional Investors Set to Record Strong Gains

Several institutional investors who joined Ather’s investor base in recent years are also poised for strong returns. Internet Fund III Pte, backed by Tiger Global, has been an early investor since 2015 and holds a 6.56% stake (1.98 crore shares). The average acquisition price for this stake is around ₹38.58 per share, which is expected to yield over seven times the original investment. At the IPO’s upper price band of ₹321 per share, this stake is now valued at more than ₹655 crore.

GIC and NIIF Investments

GIC, through Caladium Investment, and NIIF, which joined Ather’s investor list in 2022, are also in line for impressive gains. Caladium Investment holds a 15.43% stake (4.65 crore shares) with an average acquisition price of ₹204.24 per share. This stake is now valued at about ₹1,493 crore at the top end of the IPO price band.

Similarly, NIIF holds a 6.77% stake (2.04 crore shares), acquired at an average price of ₹183.71 per share, with its holding now valued at approximately ₹655 crore.

Highlights

Tiger Global’s Internet Fund III Pte set to earn 7x original investment
GIC and NIIF both poised for substantial gains from their stakes

Hero MotoCorp’s Dominant Stake

Hero MotoCorp, the largest stakeholder in Ather Energy, owns a 38.19% stake (11.51 crore shares) acquired at an average price of ₹145.99 per share. At the top end of the IPO price band, this stake is now valued at approximately ₹3,694 crore.

Highlights

Hero MotoCorp holds 38.19% stake, valued at ₹3,694 crore
Average acquisition price of ₹145.99 per share

Ather Energy’s IPO Details and Financials

Ather Energy has set a price band of ₹304-321 per share for its initial public offering (IPO), which will open for subscription on April 28, 2025. The anchor book for the IPO will open on April 25, and the subscription window will run from April 28 to April 30. The basis of allotment will be finalized by May 2, with refunds initiated and equity credited by May 5. Ather Energy’s stock is scheduled to list on exchanges on May 6.

The IPO consists of a fresh issue of ₹2,626 crore and an offer for sale of up to 1.1 crore shares, which is expected to generate approximately ₹354.76 crore at the upper price band. The total issue size has been revised to around ₹2,980.76 crore, down from an earlier planned ₹4,000 crore, which implies a post-issue valuation of around ₹11,956 crore.

For the nine months ending December 2024, Ather Energy reported revenue of ₹1,578.90 crore, up from ₹1,230.40 crore in the previous year. The company’s net loss narrowed to ₹577.90 crore, compared to a loss of ₹776.40 crore during the same period last year.