Tiger Global to make 8.3X return on Ather offer for sale

Entrackr · 1d

Tiger Global to make 8.3X return on Ather offer for sale As part of the offer for sale, Tiger Global will offload 4,00,000 equity shares, acquired at an average cost of Rs 38.58 per share, yielding a return of 8.3 times its investment. Electric two-wheeler manufacturer Ather Energy has fixed a price band of Rs 304–Rs 321 per share for its upcoming initial public offering (IPO), which will be open for subscription from April 28 to April 30. According to the RHP, Ather Energy's total issue size is pegged at Rs 2,980.7 crore, comprising a fresh issue of Rs 2,626 crore and an offer for sale amounting to Rs 354.76 crore. Investors can apply for at least one lot, comprising 46 shares, requiring an investment of at least Rs 13,984. As a book-building issue, 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, the RHP further added. Similarly, Caladium Investment is poised to earn a 57% return, while National Investment and Infrastructure Fund II will clock a 74% return on its investment through the OFS. According to the RHP, Hero MotoCorp is the largest shareholder in Ather Energy, holding 38.19% of the company. It is followed by Caladium Investment (GIC) with a 15.43% stake. The National Investment and Infrastructure Fund (NIIF) and Tiger Global hold 14.22% and 6.56%, respectively. Ather’s co-founders, Mehta and Jain, each hold 6.81%. According to Entrackr’s estimates, Ather valued itself at $1.44 billion in its initial public offering. In the first nine months of FY25, the company sold 1,08,000 vehicles, generating revenue of Rs 1,578.9 crore. However, it posted a loss of Rs 579.6 crore during the same period. For the full fiscal year ending March 2024, the company reported revenue of Rs 1,753 crore with a loss of Rs 1,062 crore.