Ather Energy shares slip 3 pc after raising Rs 1,300 crore via QIP
New Delhi, July 21
Shares of Ather Energy fell about 3 per cent in early trade on Tuesday after the electric two-wheeler maker announced closing of its Rs 1,300 crore Qualified Institutional Placement, which witnessed robust demand from institutional investors.
On the BSE, the stock declined as much as 3.02 per cent to an intraday low of Rs 1,258. At around 12:40 pm, it was trading at Rs 1,277.45, down 1.53 per cent from the previous close.
The decline came even as the company announced that it had raised Rs 1,300 crore through the QIP by allotting 1,08,15,307 equity shares to eligible institutional buyers at an issue price of Rs 1,202 per share.
The issue price was at a premium to the regulatory floor price of Rs 1,169.70, reflecting strong institutional appetite despite being at a discount to the prevailing market price when the issue was launched.
According to the company, the QIP attracted marquee domestic mutual funds and leading global institutional investors, with the issue reportedly being oversubscribed more than eight times.
The proceeds from the fundraise will strengthen Ather Energy's balance sheet, reduce its reliance on debt and provide financial flexibility to invest in research and development, manufacturing capacity expansion and other growth initiatives.
Following the allotment, the company's paid-up equity share capital has increased to more than Rs 39.41 crore.
The fundraising comes as Ather Energy continues to expand its presence in India's electric two-wheeler market through the rollout of its family scooter, the Ather Rizta, while scaling up the Ather Grid fast-charging network across the country.
On the BSE, the stock has touched a 52-week high of Rs 1,343 and a 52-week low of Rs 329.15.
In its latest reported quarter, Ather Energy narrowed its consolidated net loss to Rs 100.23 crore in the January-March quarter from Rs 234.36 crore in the corresponding period of the previous financial year, according to a regulatory filing.
— IANS
Reader Comments
So they diluted equity by issuing 1.08 crore shares at Rs 1202. Good for institutional buyers, but what about retail investors like us? EPS gets hit. But I guess if they use the money wisely - R&D, grid expansion - it could pay off in 2-3 years. I'm holding my small position, but not adding right now.
Interesting to see an Indian EV maker get such strong institutional interest. The fact that the issue price was above the floor price shows confidence. I'm a bit concerned about the debt reliance though - hope they use this wisely. The competition from Ola Electric is fierce, but Ather's build quality is solid.
Every time a company raises funds via QIP, stock dips. Same old pattern! 🙄 But look at the bigger picture: loss narrowed from Rs 234 cr to Rs 100 cr in one year. That's serious improvement. If they keep this trajectory and expand the charging network, Ather could be a solid bet. Fingers crossed! 🤞
Honestly, I'm happy they're investing in R&D and grid expansion. I own an Ather 450X and the after-sales service has improved, but fast-charging network is still limited outside top cities. Hope this fundraise helps bridge that gap. Also, Rizta family scooter is a smart move to capture the commuter segment.
One criticism: why always raise through QIP at discount? Retail investors who believed in the company at higher levels are left feeling
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