Ather Energy IPO manages to scrape through; achieves 1.4x subscription

Ather Energy’s ₹2,981 crore initial public offering (IPO), the first in over two months, saw a tepid response, achieving just 1.4x subscription. The electric two wheeler maker’s share sale relied heavily on institutional investors, with their portion subscribed 1.7x, drawing ₹1,575 crore in bids alongside ₹1,340 crore from anchor investors. 

  High networth individuals (HNIs) subscribed only 66 per cent, while retail and em­ployee portions fared better at 1.78x and 5.4x, respectively. Experts attributed the lacklustre response to volatile secondary market conditions, Ather’s prolon­ged path to profitability, and competition from established listed players in the electric vehicle sector.

  “Double-digit subscriptions are unlikely soon. Investors are cautious after recent market pain but remain open to compelling business models with reasonable valuat­ions,” said a banker. Ather’s IPO included a fresh issue of ₹2,626 crore and an offer for sale of ₹355 crore. 

 

 

With ₹1,580 crore in revenue for the first nine months of FY25, the company is valued at ~6x annualised sales, with a market capitalisation of nearly ₹12,000 crore at the upper price band. 

 

“We also believe that the issue’s premium listing to some extent will also depend on market mood and macro situation at that time. Therefore, we feel that it can be a risky bet to apply in the present environment. Hence, we recommend to wait till listing before deploying funds in this IPO,” said Hem Securities in a pre-IPO note.