Shares of Ather Energy Ltd. are trading with gains for the fourth straight session on Tuesday, November 3. The stock has gained in six out of the last seven trading sessions and has also hit new highs after it reported its quarterly results last week.
November 5 will be an important session for shares of Ather Energy as its shareholder lock-in will come to an end. The electric two-wheeler manufacturer will be seeing its one-and-a-half year and beyond shareholder lock-in come to an end on Thursday, November 5.
According to Nuvama Alternative & Quantitative Research, as many as 76.6 million shares of the company will free up for trade as the lock-in period ends. The number of shares that free up for trade amount to 21% of the company’s outstanding equity.
Based on Tuesday’s intraday high, the value of those shares that will free up for trade on Thursday with the lock-in period ending is worth ₹13,780 crore.
It must be noted that the end of the shareholder lock-in does not mean all the shares will be sold in the open market. They only become eligible to be traded.
At the end of the September quarter, promoters of Ather Energy had a 42% stake in the company, while the remaining 58% belonged to public shareholders.
Mutual Funds hold a 18.06% stake in Ather Energy at the end of the September quarter, with SBI MF, Axis MF, Motilal Oswal, HSBC MF, Aditya Birla Sun Life MF, and Edelweiss Trusteeships holding stake in the company.
The India Japan Fund has a 6.07% stake as well. Nearly 3.4 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 8.96% stake in the company. Kamath Associates and Nksquared have a 1.09% and 1.07% stake in the company at the end of the September quarter.
For the September quarter, Ather Energy reported 62.8% revenue growth, while reporting its first ever quarterly net profit of ₹1.26 crore from a loss of ₹154 crore last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter was also a positive ₹11.3 crore from an EBITDA loss of ₹133 crore.
Shares of Ather Energy have eased from the highs of the day, currently trading at the flat line at ₹1,775.6. The stock is up 140% so far this year. From its IPO price of ₹321, the stock is up nearly 6x.