Ather Energy IPO: Should You Subscribe or Stay Cautious? Key Details Inside

Ather Energy Limited, a pioneer in India's electric two-wheeler (E2W) segment, has launched its highly anticipated Initial Public Offering (IPO), bringing much-needed excitement to the primary market after a two-month-long lull in mainboard listings. The subscription window for this IPO opened on Monday and will remain available until April 30, 2025.

Let’s dive into the complete details of the offering, including brokerage opinions, GMP updates, and whether you should consider subscribing.

Ather Energy IPO Details

• IPO Size: ₹2,980.76 crore

• Fresh Issue: 8.18 crore equity shares worth ₹2,626.30 crore

• Offer for Sale (OFS): 1.11 crore shares totaling ₹354.76 crore

The price band for the IPO has been set at ₹304 to ₹321 per share.
Retail investors can apply for a minimum of one lot, which includes 46 shares, requiring a basic investment of approximately ₹13,984. However, experts recommend bidding at the cut-off price, pushing the application value slightly higher to around ₹14,766, to maximize the chances of allotment, especially if oversubscription occurs.

Minimum Investment Details:

• Retail Investors: 1 lot (46 shares) ~ ₹13,984 - ₹14,766

• Small Non-Institutional Investors (sNII): 14 lots (644 shares) ~ ₹2,06,724

• Big Non-Institutional Investors (bNII): 68 lots (3,128 shares) ~ ₹10,04,088

About Ather Energy Limited

Founded in 2013, Ather Energy is engaged in the design, manufacturing, and sale of electric two-wheelers, along with battery packs, charging infrastructure (Ather Grid), and proprietary software solutions. Operating through a vertically integrated model, the company prides itself on innovation and cutting-edge technology development, which has helped it carve a strong niche in India's EV market.

Should You Subscribe to Ather Energy IPO?

Mixed Views from Brokerage Firms

Opinions regarding Ather Energy’s IPO are divided among brokerage houses:

Cautious Outlook

Bajaj Broking Research urges caution, citing the company's ongoing financial challenges:

"Ather is expanding aggressively, including setting up a new facility in Maharashtra. However, it continues to post losses, reflected in its negative price-to-earnings ratio. Borrowings, standing at over Rs 1,121 crore as of December 31, 2024, are also a concern," Bajaj Broking noted.

They further added that only well-informed investors with high-risk appetite and a long-term investment horizon should consider subscribing — and even then, moderately.

Optimistic View

Ventura Securities, on the other hand, presented a more positive stance:

"We recommend subscribing for potential listing gains," Ventura said, highlighting Ather’s strong premium brand positioning, its wide charging network, and constant R&D innovations.

They pointed out that despite facing hurdles like subsidy cuts and low plant capacity utilisation, Ather’s upcoming mega factory — Ather Factory 3.0 (with a planned capacity of 1 million units by mid-FY26) could become a significant growth catalyst.

What Does GMP (Grey Market Premium) Say?

As of April 28, 2025, the Grey Market Premium (GMP) for Ather Energy’s IPO is ₹0.
This suggests that the stock is currently expected to list at par with its issue price, meaning no immediate listing gains are being anticipated based on grey market activity.

• IPO Price Band Upper Limit: ₹321

• Estimated Listing Price: ₹321

Important Dates for Investors

Conclusion

Ather Energy’s IPO brings a refreshing option for investors interested in India's fast-growing EV sector. However, with persistent financial losses and significant borrowings, the offering carries a degree of risk that investors must weigh carefully.

While its product innovation, brand value, and future capacity expansion provide reasons for optimism, only investors with a high-risk appetite and a long-term investment perspective should consider subscribing. Others may prefer to watch the stock's post-listing performance before making an entry.

Given the zero GMP and mixed brokerage opinions, cautious optimism is the way forward.