The Ather Energy IPO got a lukewarm response from the investors in all categories on the first day of bidding. The IPO, which had opened on Monday, April 28, will close on Wednesday, April 30.
Ather Energy is selling shares between ₹304 and ₹321 per share. Investors must apply for a minimum of 46 shares, and in multiples of the same after that. Through this IPO, the firm wants to raise ₹2,981 crore, consisting of a fresh issue of ₹2,626 crore and an offer-for-sale of 1,10,51,746 shares by promoters and current shareholders.
Up to 2:15 PM on April 28, 2025, investors had subscribed for 69,93,978 shares, which was only 13% of the total 5,33,63,160 shares put up for sale.
- The retail investor segment was subscribed 50%.
- Non-institutional investors (NIIs) subscribed 14%.
- Employee quota was subscribed 1.47 times.
- No bids were received from qualified institutional buyers (QIBs) as of then.
Established in 2013 and headquartered in Bengaluru, Ather Energy deals in electric two-wheelers (E2Ws). It designs, develops, and manufactures electric scooters, batteries, charging infrastructure, and supporting software internally. The firm operates on a vertically integrated model with a strong emphasis on technology and product development.
The grey market premium (GMP) of Ather Energy shares plummeted following poor investor sentiment and general adverse market sentiment. The GMP recently declined to a mere ₹1 per share, suggesting a probable flat IPO listing, compared to a GMP of about ₹10 during the IPO announcement.
Brokerages have provided differing views:
- There are some that recommend staying away from the IPO on the basis of high valuation, continued losses, high debt, and growing EV competition.
- Others suggest subscribing for the long term based on Ather’s growth plans, growth of the EV market, and future profitability potential.
In accordance with Ashika Institutional Equities, Ather’s strategy, brand positioning, and R&D orientation are positives, but its existing IPO valuation — 6 times trailing EV/sales — is somewhat rich relative to peers. Ashika advises it is possibly prudent to wait for a better entry point, even though they have a favorable long-term view.
Ather Energy has reserved 1,00,000 shares for employees and will provide them with a ₹30 discount per share.
- 75% of the net offer is kept aside for QIBs,
- 15% for NIIs, and
- 10% for retail investors.
Lemonn Markets’ Gaurav Garg advises high-risk investors to consider subscribing for the long term, whereas conservative investors can avoid the issue on account of unprofitability and costly pricing.
Financially, for nine months ended December 31, 2024, Ather reported:
- A net loss of ₹577.9 crore,
- Revenue of ₹1,617.4 crore.
For the entire FY 2023–24, it posted:
- A net loss of ₹1,059.7 crore,
- Revenue of ₹1,789.1 crore.
Total borrowings as of December 31, 2024, were ₹1,121.6 crore.
Axis Capital, HSBC Securities, JM Financial, and Nomura are the lead managers of the IPO, while Link Intime India is the registrar. Shares of Ather Energy are likely to list on the BSE and NSE on or about May 6, and allotment results should be out by Friday, May 2.
