Ather Energy IPO Day 2: Check latest subscription details, GMP and key dates
Ather Energy's IPO is off the blocks, but it is still looking for some real momentum. The electric two-wheeler maker opened its Rs 2,981 crore public offering for subscription on Monday, April 28, and by the morning of Day 2, it had managed to scrape together 17% subscription. Retail investors have shown a bit more life, subscribing nearly 69% of their portion, but overall, the response so far has been measured.advertisementThere is still time though. The IPO will remain open till April 30, giving investors a couple more days to weigh their options. Ather's offering is a combination of fresh shares and an offer-for-sale from existing investors. Notably, even before the subscription window opened, Ather managed to rope in Rs 1,340 crore from anchor investors, a vote of confidence from large institutions who typically set the tone for public interest.The price band for the IPO is set between Rs 304 and Rs 321 per share. For retail investors, a minimum application would mean putting up around Rs 14,000 if they are bidding at the lower end of the band. Given the competition and the tendency for oversubscription in buzzy issues, most experts suggest bidding at the cutoff price to improve chances. Employees of the company are also getting a small sweetener, with a Rs 30 per share discount.advertisement
For those who have already put in their bids and are nervously waiting, the basis of allotment is likely to be finalised by May 2. If all goes to plan, Ather Energy's shares should make their market debut on May 6, on both the NSE and BSE.LATEST GMPIn the grey market, however, enthusiasm remains muted. The grey market premium, or GMP, for Ather Energy's shares is hovering at just Re 1 above the issue price, suggesting that at least as of now, a massive listing pop is unlikely.SUBSCRIBE OR NOT?Investors are clearly weighing the potential of Ather's brand and product pipeline against some undeniable red flags. Brokerage views are divided.Bajaj Broking has advised caution, noting that while Ather is expanding aggressively — including with a major new manufacturing facility in Maharashtra — it continues to post significant losses.As of December 2024, its borrowings stood at over Rs 1,100 crore. They believe only well-informed, high-risk investors with a long investment horizon should consider applying, and even then, with moderate expectations.On the other hand, Ventura Securities has a more optimistic take. They see Ather's strong positioning in the premium EV segment, its fast-expanding charging infrastructure and a robust innovation pipeline as reasons to bet on the company for potential listing gains.advertisementThey also highlight that the upcoming mega facility, Ather Factory 3.0, could be a game changer, boosting production capacity to one million units by mid-FY26.Gaurav Garg from the Lemonn Markets desk echoed a note of caution, suggesting that only aggressive investors with a stomach for risk should consider subscribing. He pointed to the intense competition in the EV space, persistent losses and a lack of visible near-term profitability as major overhangs.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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