Retail investors drive demand for Ather Energy IPO, QIBs lag behind

Ather Energy IPO subscription status: Retail investors rushed to subscribe to the Ather Energy's initial public offering (IPO) on the second day of the subscription period, fully subscribing to the category reserved for them on Tuesday, April 29. Meanwhile, the quotas reserved for Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) still lag behind.  Notably, the public issue, which opened for subscription on April 28, has received a lacklustre response from investors so far, garnering bids for 1,28,72,594 equity shares against 5,33,63,160 on offer, leading to a total subscription of just 24 per cent by 2:11 PM on Tuesday.   Among the individual categories, the quota reserved for employees received the highest participation and was subscribed 2.84 times. Retail investors subscribed 1.01 times their reserved category, NIIs subscribed to 19 per cent of theirs. QIBs, on the other hand, showed the lowest interest and placed bids for only 6,992 shares against the 2,89,27,363 shares reserved for them.

 

Ather Energy IPO details

Ather Energy IPO is a combination of fresh issue of 81.80 million equity shares and an offer for sale (OFS) with promoters and shareholders divesting up to 11.05 million equity shares of the company. The public issue is available at a price band of ₹304–₹321 per share, and the lot size is 46 shares. Accordingly, investors can bid for a minimum of 46 shares and in multiples thereof. 

 

Taking the upper price band into consideration, a retail investor will require a minimum of ₹14,766 to bid for one lot of 46 shares and ₹1,91,958 to bid for a maximum of 13 lots or 598 shares. 

Ather Energy IPO grey market premium (GMP) today

The unlisted shares of Ather Energy were trading at around ₹322.50 per share in the grey market, according to sources tracking unofficial market activities. This reflects a grey market premium (GMP) of ₹1.50 or 0.47 per cent over the upper end of the issue price.  ALSO READ | Canara HSBC Life Insurance files for IPO; Canara Bank, PNB to sell stakes

Should you subscribe to the Ather Energy IPO?

Brokerages broadly remain optimistic about the long-term prospects of Ather Energy. Analysts at Arihant Capital and Ventura Securities have recommended subscribing to the Ather Energy IPO for listing gains. Meanwhile, Geojit and Bajaj Broking have advised subscribing for the long term. On the other hand, Deven Choksey Research has recommended avoiding the public offering, suggesting that it may be available at an attractive valuation in the secondary market. READ MORE

Ather Energy IPO timeline

The public subscription window for the Ather Energy IPO is slated to close tentatively on April 30, 2025. Following the closure of the subscription window, the basis of allotment is likely to be finalised on May 2, 2025. Successful investors will receive the company’s shares in their demat accounts tentatively on Monday, May 5, 2025. 

Shares of Ather Energy are scheduled to make their D-Street debut on May 6, 2025, by listing on both NSE and BSE.

Ather Energy IPO objective

Ather Energy will not receive any proceeds from the offer for sale, as these will go to the promoters divesting their stake. However, the company plans to use the proceeds from the fresh issue for capital expenditure related to the establishment of an electric two-wheeler (E2W) factory in Maharashtra, India. Additionally, the proceeds will be used for repayment/pre-payment of certain borrowings, investment in research and development, marketing initiatives, and general corporate purposes.

Ather Energy IPO registrar, lead managers

Link Intime India is acting as the registrar for the public offering, while Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India) are the book-running lead managers.  ALSO READ | Duroflex to push ahead with IPO, eyes double-digit revenue growth

About Ather Energy

Incorporated in 2013, Ather Energy is a pioneer in the Indian electric two-wheeler (E2W) market. It is a pure-play EV company that sells E2Ws and an associated product ecosystem, which includes software, charging infrastructure, and smart accessories — all conceptualized and designed by the company in India. Apart from battery packs, which are manufactured in-house, and portable chargers and motors, which are designed and manufactured by suppliers, other key E2W components such as motor controllers, transmissions, vehicle control units, dashboards, DC-DC converters, harnesses, and chassis are designed in-house and outsourced to suppliers for manufacturing.