Ather Energy IPO Day 1: Check subscription status, GMP, allotment date & more - Ather Energy IPO Day 1: Check subscription status, GMP, allotment date & more BusinessToday (2025)

The initial public offering (IPO) of Ather Energy attracted a muted response from the investors during the first day of the bidding process from all the categories of the bidders. The issue, which kicked off on Monday, April 28, shall close for bidding on Wednesday, April 30.

Ather Energy is selling its shares in the price band of Rs 304-321 apiece. Investors can apply for a minimum of 46 shares and its multiples thereafter. It is looking to raise Rs 2,981 crore via IPO, which included a fresh share sale of Rs 2,626 crore and offer-for-sale (OFS) of up to 1,10,51,746 equity shares by its promoters and existing shareholders.

According to the data, the investors made bids for 69,93,978 equity shares, or 13 per cent, compared to the 5,33,63,160 equity shares offered for the subscription by 2.15 pm on Wednesday, April 28, 2025. The three-day bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 50 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 14 per cent. Portions allocated towards employees werebooked 1.47 times. However, the quota set aside for qualified institutional bidders (QIBs) did not see any bids as of the same time.

Incorporated in 2013, Bengaluru-based Ather Energy is a pure-play electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. It operates as a vertically integrated EV manufacturer with a focus on product and technology development.

The grey market premium (GMP) of Ather Energy has seen a sharp correction on the back of dull bidding for the issue and dented market sentiments. Last heard, the company was commanding a premium of merely Rs 1 per share in the unofficial market, suggesting a flat listing for the investors. The GMP stood around Rs 10, when the issue was announced.

Brokerage firms mostly have a mixed view on this issue. They suggest to avoid the issue citing its rich valuations, loss making nature of the business, high debt and rising competition in the EV space. However, others suggest subscribing to it on a long-term basis citing its expansion plans, rising penetration of EVs and profitability plans in the coming quarters.

Ather Energy is building a compelling EV brand with strong focus on technology, premium user experience and smart monetization of software, which differentiate it from volume-led players. Despite being loss-making, margin trends and strategic choices (avoiding cell manufacturing, deep R&D focus) provide operating leverage in the medium-term, said Ashika Institutional Equities.

"However, at current IPO market cap, the company is valued at 6 times of TTM EV/sales, which is slightly higher than peers. Thus, the risk-reward may skew unfavourably in the near-term given huge loss and capital needs. We believe in waiting for a better entry point or more clarity on margin and distribution scale-up," it said. Ashika has a 'positive' outlook on it.

Ather Energy has reserved 1,00,000 equity shares for its eligible employees who will get a discount of Rs 30 per share during the IPO. 75 per cent of the net issue has been reserved for qualified institutional bidders, while 15 per cent of the net offer shall go to the non-institutional bidders. Only 10 per cent of shares from the net issue shall be allocated to the retail investors.

Gaurav Garg from Lemonn Markets Desk suggested aggressive investors to subscribe for long term if they have a high-risk appetite as losses and competition are big overhangs. However, conservative Investors can 'avoid' the issue due to no profitability in sight and aggressive pricing, he said.

For the nine months ended on December 31, 2024, Ather Energy reported a net loss of Rs 577.9 crore, with a revenue of Rs 1,617.4 crore. The company's net loss stood at Rs 1,059.7 crore with a revenue of Rs 1,789.1 crore in the financial year 2023-24. Its total borrowing stood at Rs 1,121.6 crore as of December 31, 2024.

Axis Capital, HSBC Securities & Capital Markets, JM Financial, Nomura Financial Advisory and Securities (India) are the book running lead managers of the Ather Energy IPO, while Link Intime India is the registrar for the issue. Shares of Ather Energy shall be listed on both BSE and NSE with May 6 as the tentative date of listing, with allotment likely to be out by Friday, May 02.