Ather IPO subscribed 28% on Day 2, Prestige and Urban Company File for Listing India's initial public offering (IPO) market is back again buzzing with activity, with the mainboard in the news with Ather's offering, with Prestige and Urban Company filing papers with SEBI.
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India's initial public offering (IPO) market is back again buzzing with activity, with the mainboard in the news with Ather's offering, with Prestige and Urban Company filing papers with SEBI.
Ather IPO
The big highlight of the week has been Ather Energy's IPO, with the EV maker going public for an INR 2900 crore listing. On day 2, the listing has been subscribed 28 per cent so far, concluding tomorrow.
The retail portion of the IPO has been booked 1.10 times, the employee portion by 3.15, and Non-Institutional Investors (NII) by 0.27 times, with zero Qualified Institutional Buyers (QIBs).
Ather earlier secured INR 1,340 crore from anchor investors ahead of its highly anticipated initial public offering (IPO), as per papers filed with SEBI.
The company also allotted 4.17 crore shares to 36 anchor investors at INR 321 apiece, the top end of its price band of INR 304–321.
The anchor round drew interest from a mix of marquee global and domestic names. Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale were among the international investors participating. On the domestic front, mutual funds and insurers like PSBI Mutual Fund, Aditya Birla Sun Life MF and Insurance, ICICI Prudential MF, Invesco MF, ITI MF, and Union MF also backed the offering.
According to Ather, proceeds from the fresh issue will be used to set up a new manufacturing facility for electric two-wheelers in Maharashtra and to pare down existing debt.
Prestige files for IPO
Prestige Hospitality Ventures, a part of the real estate development company Prestige Group, has filed papers with SEBI, with plans to raise approximately INR 3600 crores (USD 318 million) through the public market.
According to Prestige, it is also considering a pre-IPO placement of up to INR 3.4 billion (USD 40 million).
The company is a fully owned subsidiary of Prestige Estates Projects and owns properties such as JW Marriott Prestige Golfshire and Conrad Bengaluru.
According to Prestige, INR 1,121.276 crores from the IPO will be used to complete or partial repayment or pre-payment of borrowings close to INR 397.248 crores.
The IPO is said to consist of a fresh issue of equity shares with a face value of INR 5 each, totaling up to INR 1,700 crores, with an offer for sale (OFS) of equity shares with a face value of INR 5 each, amounting to INR 1,000 crores.
The company also said that it plans to utilise the net proceeds to scale operations through acquisitions, strategic ventures, and general corporate purposes.
JM Financial Limited, CLSA India Private Limited, J.P. Morgan India Private Limited, and Kotak Mahindra Capital Company Limited are the exclusive Book Running Lead Managers (BRLMs) for this issue.
Urban Company
Urban Company, the online services marketplace for personal and domestic needs, has filed its Draft Red Herring Prospectus (DRHP) with SEBI recently, with intentions to raise close to INR 1900 crore.
Out of the total expected proceeds, INR 429 crore will come from the fresh issue, while the remaining INR 1,471 crore will come through the sale of shares by existing shareholders.
According to Urban Company, there will also be a pre-IPO placement worth INR 85.8 crore. It also said that a major chunk of the proceeds will be used towards new technology, office space charges, and marketing activities.
According to a report by Moneycontrol, investors in the company, such as Excel India, Bessemer India, Elevation Capital, Tiger Global, and VY Capital, are to benefit significantly from offloading their shares via the IPO.
