Ather Energy Raises Rs 1,340 Crore from Anchor Investors ahead of IPO

Electric two-wheeler manufacturer Ather Energy Limited has allocated 4,17,45,576 equity shares to anchor investors at ₹321 per share (including a premium of ₹320 per share), raising approximately ₹13,40 crore ahead of its public offering scheduled to open on Monday.

SBI Small Cap Fund emerged as the largest single fund investor, securing 17.9% of the anchor allocation with 7,476,656 shares worth ₹2,400 crore. Another SBI mutual fund scheme, SBI Magnum Children's Benefit Fund, picked up another 5.2% of the total anchor portion. 

Other significant domestic participants include Aditya Birla Sun Life Trustee Private Limited, which invested ₹1,660 crore for a 12.4% stake of the anchor portion.

"The Board of Directors of the Company at its meeting held on April 25, 2025, in consultation with the book running lead managers to the Offer, has finalized allocation of 41,745,576 Equity Shares to Anchor Investors," the company stated in its filing.

Foreign institutional investors also showed strong interest, with Abu Dhabi Investment Authority securing 7.5% of the anchor portion, investing approximately ₹1,000 crore. Other notable international participants include Prudential Hong Kong Limited and Templeton Emerging Markets funds.

In total, domestic mutual funds received 49.6% of the total anchor allocation, with 20,685,556 equity shares distributed among seven domestic fund houses operating through 14 different schemes.

The Bengaluru-based company, formerly known as Ather Energy Private Limited, plans to use the proceeds for establishing a new manufacturing facility in Maharashtra and for debt repayment, as per previous disclosures.

Ather Energy's IPO comes as India's electric two-wheeler market continues to grow, with the company currently holding the fourth position in the market with approximately 11.2% market share in FY25. The company follows market leader Ola Electric, which went public earlier this year at a $4 billion valuation.

The public issue is being managed by Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Private Limited as book running lead managers.

As per regulatory requirements, if the offer price discovered through the book building process exceeds the anchor investor allocation price, anchor investors will be required to pay the difference by the specified pay-in date.

The IPO is scheduled to open for public subscription on Monday, with the company expected to list on both the BSE and NSE. You can read the full list of anchor investors here.

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