About the Company:
Ather Energy Ltd is a pioneer in the Indian electric two-wheeler (“E2W”) market. Company designs and develops E2Ws, battery packs, charging infrastructure, associated software and accessories, while we
manufacture our battery packs and assemble our E2Ws in-house.
Company is a pure play EV company that designs all our products ground-up in India. Company sold 109,577 E2Ws in Fiscal Year 2024. In Fiscal Year 2024, company was the third largest player by volume of E2W sales.
Company builds products with a focus on quality and user experience. Company’s products are positioned at a premium price in their respective segments.
Company’s current E2W portfolio comprises two product lines – the Ather 450 line, which caters to customers seeking performance scooters, and the Ather Rizta line, which is targeted at customers seeking convenience scooters for their family.
Company is the first two-wheeler (“2W”) OEM to establish a 2W fast charging network, the Ather Grid, in India.
Company’s Research and Development:
Company’s technological innovations are enabled by our in-house design and research and development (“R&D”) capabilities. Company’s R&D team had 701 on-roll employees, housed at three R&D facilities in Bengaluru, India, as at March 31, 2024.
Company had 48% of our total workforce dedicated to R&D as at March 31, 2024. As at August 31, 2024, globally, company had 291 registered trademarks, 199 registered designs and 45 registered patents, in addition to pending applications for 11 designs, 93 trademarks and 210 patents.
Company’s Manufacturing Facility:
Company assemble our E2Ws and manufacture our battery packs at our manufacturing facilities located near Hosur, Tamil Nadu, India (the “Hosur Factory”).
At the Hosur Factory, company had a total annual installed capacity of 420,000 units for E2Ws and 379,800 units for battery packs as at March 31, 2024. Company’s battery pack manufacturing capacity at the Hosur Factory is being expanded to manufacture 531,120 units per year.
Company is in the process of building the first phase of our Factory 3.0 in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, India to expand our total installed production capacity to 1.42 million E2Ws upon completion of phase two.
Company’s Business Model:
Company’s business model is founded on four key pillars:
- Vertically integrated approach to design.
- Software-defined ecosystem.
- Premium positioning.
- Capital efficient approach to business operations across the value chain.
Company Started the Business with a Small Factory:
Company started with a small-scale factory in the Whitefield area of Bengaluru, Karnataka, India, which had a total installed capacity of 21,300 E2Ws per year in Fiscal Year 2021.
Company then moved our manufacturing to larger facilities in our Hosur Factory. Company began operations at the first facility in our Hosur Factory in January 2021, which had a total installed capacity of 113,700 E2Ws and 121,200 battery packs.
Production at the second facility in our Hosur Factory began in September 2022, and with the addition of this phase, our total installed capacity increased by 266,850 E2Ws and 232,475 battery packs.
As at March 31, 2024, the Hosur Factory had a total installed capacity of 420,000 units per annum for vehicle assembly and 379,800 units per annum for battery pack manufacturing.
Company’s Partnership Agreement with Google:
Company introduced the Ather Grid in every city into which we expanded our distribution network through our retail partner-operated experience centres.
Further, in March 2024, company entered into partnership agreement with Google Asia Pacific Pte Ltd., pursuant to which Google Maps’ customers will be able to find Ather Grid locations with live status updates starting in the first half of the Fiscal Year 2025.
Company introduced Express Care service:
In Fiscal Year 2024, company introduced Express Care service, which offers expedited vehicle servicing within a maximum turnaround time of one hour for standard periodic maintenance.
Company’s Sales Volume:
Company’s products, despite being positioned at premium prices, recorded an increase in sales volumes to 109,577 in Fiscal Year 2024 from 92,093 in Fiscal Year 2023 and 23,402 in Fiscal Year 2022. Company was the third largest E2W player by sales volume in Fiscal Year 2024.
Company’s E2W Product Lines:
Percentage of Ather scooters purchased with financing:
Company’s Breakdown of Sales volume by vehicle model:
Note: Delivery of the Ather Rizta variants commenced from May 2024 and therefore did not contribute to our sales volume in Fiscal Years 2022, 2023 and 2024. As at June 30, 2024, we have received 23,915 net bookings (i.e. bookings after accounting for cancellations) for the Ather Rizta variants.
Company’s Operational and Financial metrics:
Management Team:
- Mr. Tarun Sanjay Mehta (Designation: Executive Director and Chief Executive Officer)
- Mr. Swapnil Babanlal Jain (Designation: Executive Director and Chief Technical Officer)
Objectives of the Issue:
Offer For Sale: (Rs.Will be Updated)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital expenditure to be incurred by our Company for establishment of an E2W factory in Maharashtra, India | 927.2 cr |
| Repayment/ pre-payment, in full or part, of certain borrowings availed by our Company | 378.2 cr |
| Investment in research and development | 750 cr |
| Expenditure towards marketing initiatives | 300 cr |
Proposed timeline for Implementation:
Positives for the Company:
Company’s Ability to Pioneer New Technologies.
- The Electrification of the 2W industry gained momentum from the launch of highspeed E2Ws. Ather entered the market in 2018 with the Ather 450 model and has been a pioneer in the Indian E2W industry.
- Company has strong in-house R&D capabilities across different disciplines give us control over the design of our existing and future product offerings.
- Company’s first E2W, the Ather 450, was India’s first E2W with features such as a touchscreen dashboard, internet connectivity via 3G SIM, OTA updates and aluminium chassis. The Ather 450 was also the first E2W to offer top speed of 80 kmph, which was the highest speed among E2Ws in 2018.
- In addition, Company also brought about several innovations in the E2W industry such as fast charging, Fall Safe and traction control, as well as smart helmets within the E2W segment.
Company is Currently developing two new E2W platforms.
- Company is currently developing two new E2W platforms: a new scooter platform (the EL platform) and a motorcycle platform (the Zenith platform).
- The EL platform, which is in an advanced stage of development, will serve as a more cost-effective and versatile platform for our scooter lines. It will incorporate a new powertrain, electronics and chassis platform, while utilising elements of the battery and Atherstack from the Ather 450 platform.
- The EL platform will allow us to develop a diverse range of scooter models tailored to various domestic and international markets needs, and reduce our costs.
- Additionally, Company is developing our Zenith platform, which is designed to support new E2W models targeting the 125 cc to 300 cc motorcycle segments.
- The motorcycles accounted for 63.2% of the Indian 2W market in Fiscal Year 2024. The motorcycle segment presents a significant opportunity for us to expand our addressable market.
Company Plans to Build Factory 3.0.
- Company plans to build our Factory 3.0 in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra, India, to expand the production capacity to accommodate for the growth of our business and demand in the E2W industry in general, as well as improve cost efficiencies in our production.
- The strategic location of Factory 3.0 in Maharashtra, West India, will help us to be closer to markets with high EV penetration rates, thereby improving our distribution and logistics cost. The factory will be completed in two phases with a view to ultimately increase our production capacity by one million E2Ws per year.
- Company plana to commence the first phase of construction of the Factory 3.0 in March 2025 and plan to commence production at the Factory 3.0 in phases, starting in May 2026.
- The first phase of construction is expected to be completed by March 2027, following which, it will provide an additional installed production capacity of 0.5 million E2Ws per year. Upon completion of construction for both phases, Company’s total installed capacity from the Hosur Factory and Factory 3.0 is expected to reach a total of 1.42 million E2Ws per year.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 413.8 | 1081.8 | 1789.1 |
| Net Profit | (-344.6) | (-863.9) | (-1062.3) |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ather Energy Ltd | 1 | (-47) | N.A | (-194%) | 24 |
| Hero MotoCorp Ltd | 2 | 187 | 30 | 21% | 884 |
| Bajaj Auto Ltd | 10 | 273 | 40 | 29% | 935 |
| Ola Electric Mobility Ltd | 10 | (-4) | N.A | (-78%) | 6 |
| TVS Motors Ltd | 1 | 146 | 78 | 26% | 143 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| TBA | TBA | TBA | TBA | TBA |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Ather Energy Ltd is a pioneer in India’s electric two-wheeler (E2W) market, known for its innovation in designing and developing E2Ws, battery packs, charging infrastructure, and associated software. Ather manufactures its battery packs and assembles its E2Ws in-house, offering a comprehensive approach to electric mobility.
As a pure-play electric vehicle (EV) company, Ather designs all its products from the ground up in India, contributing to the country’s growing EV ecosystem. In Fiscal Year 2024, Ather sold 109,577 E2Ws, making it the third-largest player in the E2W market by sales volume. Ather focuses on quality and user experience, positioning its products at a premium price point. Its current product portfolio includes the Ather 450 line, designed for customers seeking performance scooters, and the Ather Rizta line, which caters to families looking for convenience scooters. To support its growth, Ather is expanding production with the development of Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra. Once complete, the facility will increase production capacity to 1.42 million E2Ws. With its ability to pioneer new technologies, Ather is positioned as a promising investment opportunity for long-term investors, especially as the company continues to drive the electric vehicle revolution in India. |
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
| Company Contact Info: |
|---|
| Ather Energy Ltd 13th Floor, Tower D, IBC Knowledge Park, #4/1 Bannerghatta Main Road, Bangalore 560 029, Karnataka, India. Telephone: +91 80 6646 5750 Email: cs@atherenergy.com Website: www.atherenergy.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: atherenergy.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
