Ather Energy IPO: Employees Portion Fully Subscribed, GMP Drops; Why High-Risk Investors Should Subscribe?

Ather Energy IPO Day 1: Ather Energy IPO has opened for subscription on April 28th on BSE and NSE. Notably, the IPO's live GMP has seen lacklustre demand, and hints at marginal premium listing on exchanges. Not just that the IPO has received mixed opinions from experts. And the analysts who recommend the IPO have clarified that it is only good to subscribe if you are a high-risk investor. Let's find out more!

Ather Energy IPO Day 1 Subscription:

At the time of writing, on NSE, the IPO received cumulative bids of 41,56,882 equity shares, which is merely 8% of the total offered size of 5,33,63,160 equity shares. On Day 1, in less than 3 hours, the employees' reserved category fully subscribed by 1.11 times with 1,10,860 equity shares bid against the offered size of 1 lakh shares. Also, the retail investors category has shown healthy demand with bids of 36,80,598 equity shares, registering subscription of 38% from reserved size of 97,34,319 equity shares.

On the other hand, there was dull demand from non-institutional investors (NII) with bids of 3,65,424 equity shares, subscribing to 3% of the total reserved size of 1,46,01,478 equity shares. There are zero subscriptions from qualified institutional buyers (QIBs) for whom up to 2,89,27,363 equity shares are allocated.

From the total IPO size, QIBs are allocated 75% of the offer, while 15% is reserved for NIIs and 10% is kept for retail investors.

Ather Energy IPO Details:

The IPO opened on April 28th and will be available for subscription for a 3-day span before ending on April 30th. It is a 100% book-building, with price bands fixed at Rs 304 to Rs 321 per equity share, with a face value of Re 1 each. The bid lot size is 46 Equity Shares and in multiples thereof.

From the total fresh issue size, about Rs 927.2 crore of the offer will be used for capital expenditure to establish an E2W factory in Maharashtra, India. Ather plan to use Rs 40 crore proceeds for repayment pre-payment, in full or part, of certain borrowings; while Rs 750 crore will be used for investment in research and development, and Rs 300 crore will utilized for expenditure towards marketing initiatives. The rest sum will be used for general corporate purposes.

Ather will not use the proceeds from OFS since selling shareholders will be eligible for it. The selling shareholders are Tarun Sanjay Mehta, Swapnil Babanlal Jain, Caladium Investment, National Investment and Infrastructure Fund II, Internet Fund III, IITM Incubation Cell, IITMS Rural Technology and Business Incubator, and Amit Bhatia.

Book-running lead managers of the IPO are Axis Capital, HSBC Securities and Capital Markets, JM Financial, Nomura Financial Advisory and

Ather Energy IPO Live GMP Today:

As per Investor Grain, Ather Energy IPO's last GMP is Re 1, last updated Apr 28th 2025 11:57 AM. With a price band of 321.00, Ather Energy IPO's estimated listing price is Rs 322 (cap price + today's GMP). The expected percentage gain/loss per share is 0.31%.

This GMP has declined from the Rs 3 per share grey market premium on the previous day.

Who Should Subscribe to Ather Energy IPO?

Two experts have recommended SUBSCRIBE but both have emphasized that they should do this only if they are aggressive, long-term or high-risk investors.

For instance, Gaurav Garg of Lemonn Markets Desk said, "Subscribe only if you have a high-risk appetite as losses and competition are big overhangs."

If you are not, Garg added, "Avoid or watch from the sidelines. No profitability in sight and aggressive pricing."

Meanwhile, on another note, Geojit analysts said, "At the upper price band of ₹321, Ather's EV/Sales ratio of 7.1x (FY24) appears expensive. However, as a pioneer in the E2W segment, the company is in a strong growth phase with robust R&D and new technological platforms. Despite current profitability challenges and valuation concerns, we recommend a "Subscribe" rating for high-risk investors with a long-term outlook."

On the other hand, SBI Securities has recommended to AVOID the IPO. The main reason for avoiding this is that Ather Energy is yet to achieve any profitability at the EBITDA and PAT level, and the competition is intensifying in the electric two-wheeler industry with established OEMs such as TVS Motors, Bajaj Auto and Hero MotoCorp expanding their respective E-2W product portfolio.

Ather Energy IPO Allotment Date:

After the IPO, the tentative allotment date for Ather Energy is likely to be on Friday, May 2, 2025. This will be followed by the initiation of refunds and credit of shares to eligible investors on May 5.

Ather Energy IPO Listing Date:

Ather is expected to list on May 6, 2025. The IPO will debut on both BSE and NSE.

About Ather Energy IPO:

Incorporated in 2013, Ather Energy IPO is a pioneer in the Indian electric two-wheeler ("E2W") market. It is a pure-play EV company that sells E2Ws and the associated product ecosystem, comprised of software, charging infrastructure and smart accessories, all of which are conceptualised and designed by the company in India. Other than 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.