Ather Energy Ipo: Nuvama Sees Company Gaining Big, Bernstein Cautious On Indian Ev Startups

Ather Energy is each group to motorboat its Rs 2,981 crore IPO adjacent week, connected Monday, April 28, making it nan first rumor of nan financial twelvemonth 2025-26. It will go India's 2nd pure-play electrical conveyance shaper aft Ola Electric Mobility, which launched its Rs 6,145 crore IPO successful August 2024. However, analysts person a mixed position connected India's electrical two-wheeler (e2W) play.

After gathering nan apical guidance of Ather Energy, Nuvama Institutional Equities said that nan institution is focusing connected 2 caller platforms- EL (scooter platform) and Zenith (motorcycle platform), which will grow its addressable market. Also, nan web description continues, peculiarly successful non-South regions. In 9MFY25, nan South region formed 61 per cent of its sales.

The company's capacity is being added done nan Maharashtra plant—0.5 cardinal units successful Phase 1 would beryllium yet expanded to 1mn units and IPO caller rumor shall spell towards capacity addition, R&D, trading efforts and indebtedness repayment, it noted. The institution shall bid a valuation of Rs 11,960 crore.

To recall, Ather Energy will beryllium trading its shares successful nan scope of Rs 304-321 apiece, pinch a batch size of 46 equity shares, betwixt April 28-30 to raise a full of Rs 2,980.76 crore. The rumor includes caller shares of Rs 2,626 crore and offer-for-sale (OFS) of up to 1,10,51,746  equity shares of nan company.

Before nan motorboat of its IPO, Ather Energy has been losing its crushed successful nan unofficial marketplace arsenic nan grey marketplace premium (GMP) of nan institution has dropped to simply Rs 3-5, citing a minimal upside of up to 2 per cent complete nan precocious extremity of nan value band. The GMP stood astatine Rs 17-20, erstwhile nan rumor was announced.

India’s electrical two-wheeler communicative was dominated by startups, but now it's changing arsenic established OEMs are catching up. Several startups are hence seeking entree to nationalist markets, said Bernstein. "We counsel caution. We do not see immoderate unlisted startup a safe investment, though a prime fewer are demonstrating reliable models and showing committedness successful carving retired a niche."

The travel to scaling up is fraught pinch challenges. Don’t beryllium swayed by little valuation inquire aliases nan allure of trading momentum based connected nan belief that these startups will modulation from losses to profitability. While immoderate whitethorn win successful reducing losses, that does not guarantee scalability aliases warrant immoderate valuation. Mainstream startups lacking differentiation and PLI support should beryllium approached pinch caution, moreover if they person garnered immoderate traction, said Bernstein.

Axis Capital, HSBC Securities & Capital Markets, JM Financial, Nomura Financial Advisory and Securities (India) are nan book moving lead managers of nan Ather Energy IPO, while Link Intime India is nan registrar for nan issue. Shares of nan institution shall beryllium listed astatine some BSE and NSE connected Tuesday, May 06.