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Business Standard
29-04-2025
- Business
- Business Standard
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 | 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. 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 | 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.
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Business Standard
29-04-2025
- Business
- Business Standard
Ather Energy IPO day 2 update; subscription lags at 21%, GMP at ₹ 1
Ather Energy IPO subscription status: The initial public offering (IPO) of Electric Vehicle maker Ather Energy, which opened for subscription on April 28, has seen a muted response from the investors so far. Notably, this is the first mainline public offering of fiscal year 2025-26 (FY26). Ather Energy IPO subscription status at 11 AM on Day 2 Ather Energy IPO has been subscribed 21 per cent as of 11:03 AM on Tuesday, April 29. According to NSE data, the employee quota received the highest participation, being oversubscribed by 2.39 times. Retail investors subscribed to 85 per cent of the portion reserved for them, while non-institutional investors (NIIs) subscribed 18 per cent. Meanwhile, qualified institutional buyers (QIBs) placed bids for only 5,060 shares against the 2,89,27,363 shares reserved for them. Ather Energy IPO day 1 subscription status According to the data available on the NSE, ₹2,981.06 crore offering has received the bids for 86,09,406 equity shares, against 5,33,63,160 on sale, leading to subscription of 16 per cent by the end of the first day, April 28. Among the individual categories, quota reserved for the employees received the highest participation and got booked by 1.78 times. Retail investors subscribed their category reserved to them by 63 per cent, Non-institutional investors (NIIs) 16 per cent, and Qualified institutional buyers (QIBs) has only placed the bids for 5,060 against 2,89,27,363 reserved for them. Ather Energy IPO details The public offering which comprises both a fresh issue as well as an offer for sale (OFS), 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. At the upper price band, 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. A Small-high net worth individual (HNI) can bid for a minimum of 14 lots or 644 shares of Ather Energy IPO with an amount of ₹2,06,724, and a maximum of 67 lots or 3,082 shares with ₹9,89,322. Ather Energy IPO grey market premium (GMP) The unlisted shares of Ather Energy were trading at around ₹322 per share in the grey markets, revealed the sources tracking unofficial market activities. This reflects a grey market premium (GMP) of ₹1 or 0.31 per cent over the upper end of the issue price. Should you subscribe to the Ather Energy IPO? Brokerages broadly remain optimistic on the long-term prospects of Ather Energy. Analysts at Arihant Capital, and Ventura Securities both have recommended investors to subscribe the Ather Energy IPO for listing gains. Meanwhile, Geojit, and Bajaj Broking have recommended to subscribe for long-term. Deven Choksey Research, on the other hand, has recommended the investors to avoid the public offering and said that it can be bought at an attractive valuation in the secondary market. READ MORE Ather Energy IPO allotment date, listing date The public offering will remain available for subscription till April 30, 2025. The basis of allotment of the Ather Energy IPO shares is expected to be finalised tentatively on May 2, 2025. The successful investors will receive the company's shares on Monday, May 5, 2025. ALSO READ | Shares of Ather Energy are scheduled to list on the NSE and BSE tentatively on May 6, 2025. Ather Energy IPO objective Ather Energy will not receive any proceeds from the OFS. The company, however, proposes to use the proceeds from the fresh issue for capital expenditure to be incurred for the establishment of an E2W factory in Maharashtra, India. The company will further use the proceeds for repayment/pre-payment, in full or part, of certain borrowings availed, investment in research and development, expenditure towards marketing initiatives, and general corporate purposes. Ather Energy IPO registrar, BLRM details For the public offering, Link Intime India acts as the registrar, while Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India) are the book-running lead managers. About Ather Energy Ather Energy is a pure-play EV company, engaged in the design, development, and sale of E2Ws, complemented by an integrated ecosystem comprising in-house developed software, charging infrastructure, and smart accessories. The company operates as a vertically integrated EV manufacturer with a focus on product and technology development.
Time of India
28-04-2025
- Automotive
- Time of India
Ather Energy IPO: Check subscription on Day 1, GMP and other details
The initial public offering (IPO) of Ather Energy was subscribed just over 12% on the first day of bidding, indicating a slow start to the nearly Rs 3,000-crore public offer. Retail investors led the bidding, with their category subscribed 46%, while the Non-Institutional Investors (NII) category was subscribed 14%. The subscription window is open until April 30, with listing expected on May 6. The Bengaluru-based electric scooter manufacturer launched its IPO earlier today, marking the first major mainboard listing of FY26. The IPO comprises a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of Rs 355 crore, with shares priced between Rs 304 and Rs 321 apiece. Despite the subdued grey market premium (GMP) — currently below 1% — analysts remain optimistic about Ather's prospects, citing its strong position in the electric two-wheeler market, robust in-house R&D, and recent product launches like the Ather Rizta. Also Read: Ather Energy's Rs 2,981-crore IPO opens for subscription. Should you bid amid weak GMP? "At the upper band of Rs 321, the issue is valued at an EV/sales ratio of 8x, based on 9MFY25 sales of Rs 1,579 crore. We are recommending a 'Subscribe for listing gains' rating for this issue," said Arihant Capital. At the upper price band, the IPO valuation has been adjusted significantly to approximately $1.4 billion, a 44% reduction from its earlier target, reflecting a cautious approach amid global market volatility. The company has secured Rs 1,340 crore from anchor investors, including SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Investment Authority. Proceeds from the fresh issue will be used to establish a new manufacturing facility in Maharashtra, repay certain borrowings, and invest in research and development, marketing, and general corporate purposes. From the IPO, the company's early backers, such as IIT Madras, are set to benefit significantly; the institute's incubation arms hold 15.58 lakh shares and are expected to earn around Rs 50 crore from the IPO. Ather Energy is strongly positioned in India's fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and robust in-house R&D and technology ecosystem. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
