Ather Energy IPO Day 2: Subscription at 22%, Grey Market Premium Steady at ₹1

Ather Energy's Initial Public Offering (IPO), which opened for subscription on April 28, 2025, has experienced a lukewarm response from investors in its early stages. This IPO marks the first mainline public offering of the fiscal year 2025-26 (FY26), yet it has only managed to attract a 22% subscription by midday on April 29.

Day 2 Subscription Status: April 29, 12 PM

As per data available from the National Stock Exchange (NSE) at 12 PM, the employee quota received the highest interest with 2.60 times oversubscription. Retail investors have subscribed to 91% of their allotted portion, while non-institutional investors (NIIs) have subscribed to 18%. Qualified institutional buyers (QIBs), however, have shown minimal participation, bidding for only 5,060 shares out of the 2.89 crore shares reserved for them.

Day 2 Morning Snapshot: 11 AM Update

Earlier in the day, at around 11 AM, the IPO was subscribed 21%. The employee category continued to dominate participation with 2.39 times subscription. Retail investors had subscribed to 85% of their quota, and NIIs maintained a steady 18% subscription. QIBs remained largely inactive at this point.

Day 1 Subscription Recap

At the end of Day 1, April 28, the ₹2,981 crore public issue had received bids for 86,09,406 equity shares against 5,33,63,160 shares on offer, reflecting a 16% total subscription. The employee quota was the most active with 1.78 times subscription. Retail investors accounted for 63%, while NIIs subscribed to 16%. QIBs again displayed minimal interest, placing bids for just 5,060 shares.

IPO Details: Price Band and Lot Size

The Ather Energy IPO includes both a fresh issue and an offer for sale (OFS). The price band is set between ₹304 and ₹321 per share. Investors can bid for a minimum of one lot (46 shares) and in multiples thereof. A retail investor requires ₹14,766 for one lot at the upper price band and ₹1,91,958 for the maximum allowable 13 lots (598 shares).

Small high-net-worth individuals (HNIs) can place bids for a minimum of 14 lots (644 shares) at ₹2,06,724 and up to 67 lots (3,082 shares) for ₹9,89,322.

Grey Market Premium (GMP)

In the grey market, Ather Energy's unlisted shares are trading at around ₹322, representing a negligible GMP of ₹1 or 0.31% over the upper end of the price band. This marginal premium suggests limited short-term enthusiasm among grey market investors.

Should You Subscribe to the IPO?

Analysts have mixed opinions on the IPO. Firms like Arihant Capital and Ventura Securities recommend subscribing for listing gains. Others like Geojit and Bajaj Broking suggest a long-term investment approach. However, Deven Choksey Research advises avoiding the IPO, citing more attractive valuations in the secondary market.

Key Dates: Allotment, Listing, and Subscription Close

The subscription window remains open until April 30, 2025. The basis of allotment is expected to be finalized by May 2, and successful applicants may receive shares by May 5. The stock is set to list on both NSE and BSE on May 6, 2025.

IPO Objective: Use of Proceeds

Proceeds from the fresh issue will fund:

• Establishment of a new electric two-wheeler (E2W) manufacturing facility in Maharashtra.

• Repayment or prepayment of certain borrowings.

• Investment in R&D and product development.

• Marketing initiatives and general corporate purposes. Note: Ather will not receive any funds from the OFS portion.

Lead Managers and Registrar

Link Intime India is the registrar for this IPO. Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory are the book-running lead managers.

About Ather Energy

Ather Energy is a vertically integrated electric vehicle manufacturer focused on electric two-wheelers (E2Ws). The company designs, develops, and markets its products while offering an integrated ecosystem that includes proprietary software, charging solutions, and smart accessories. It has established itself as a key player in India's EV segment, known for its innovation and customer-focused approach.