By Admin 
Ather energy IPO: The IPO of Electric to Vehicle Maker Ather Energy Limited is opening for subscription on 28 April. Investors will be able to bid for this by 30 April. The company will raise 2,981 crore with this issue. However, since the announcement of the issue, Ather Energy’s Gray Market Premium (GMP) is decreasing.
Company reduced IPO size
Ather Energy has fixed a price band of Rs 304-321 per share for this IPO. The lot size is of 46 equity shares. Tiger Global Funde has reduced the size of its IPO and now the company plans to issue a fresh issue of Rs 2,981 crore. Whereas the first plan was to raise Rs 3,100 crore.
The minimum investment amount for retail investors is Rs 13 thousand 984. In the IPO, 8.18 crore fresh equity shares worth Rs 2,626 crore will be issued and an offer for 1.1 crore shares will be for sale. The size of the total issue is Rs 2,981 crore. Promoter Tarun Sanjay and Swapnil Babanla will sell some part of their stake with other corporate shareholders under the Os.
Share’s gray market premium
A day before the bidding, the Gray Market Premium (GMP) of Ather Energy share is Rs 3, which shows 0.93 percent premium at the issue price. Before the launch of the IPO, GMP started from Rs 17 on April 22 and it has now come on a single digit.
In which work will the fund use?
Funds from IPOs will be used for many major tasks, including setting up of new electric two-wheeler factory in Maharashtra, repayment of debt, investment and development (R&D) investment and marketing and expenses for marketing and general corporate works. This electric scooter manufacturer has raised 1,340 crore from anchor investors. The shares were allotted at a price of 321 per share.
Total 4.18 crore equity shares were released to 36 anchor investors, including names like SBI, Abu Dhabi Investment Authority (Adia), Invesco, Franklin Templeton, ICICI Prudential, Morgan Stanley and Society General. Hero MotoCorp is the largest shareholder in Ether with about 40 percent stake. Hero has retained his stand that he will not sell his shares in public offer.
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)
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