Ather Energy's much-anticipated initial public offering (IPO) commenced today, marking the first mainboard issue of the fiscal year 2025-26. The Bengaluru-based electric two-wheeler manufacturer aims to raise approximately ₹2,981 crore through this offering, comprising a fresh issue of ₹2,626 crore and an offer for sale (OFS) of ₹354 crore. The price band for the IPO is set between ₹304 and ₹321 per equity share, with a minimum lot size of 46 shares.
Subscription Status:
As of 2:30 PM on Day 1, the IPO has been subscribed 13% overall. The employee segment has been fully subscribed, reflecting strong internal confidence. However, the Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) portions have seen minimal interest, with subscriptions at 0.00% and 0.14%, respectively. The retail portion stands at 0.47% subscription.
Grey Market Premium (GMP):
The grey market premium for Ather Energy's IPO is currently ₹0, indicating a neutral stance among retail investors. This is a significant decline from the ₹20 premium observed earlier in the week, suggesting reduced expectations for listing gains. Experts note that the GMP has been trending downward, with some predicting a further decline.
Brokerage Recommendations:
Brokerages have varied opinions on the IPO. Geojit Investments has assigned a 'Subscribe' rating, citing Ather's strong position in the growing electric two-wheeler market and its robust research and development capabilities. However, they also highlight concerns over the company's current valuation and profitability challenges.
Investors should weigh the long-term growth potential of Ather Energy against the current market sentiment and valuation concerns. While the company is a pioneer in the electric vehicle sector, the muted GMP and low institutional interest may impact short-term listing gains. Potential investors are advised to consider their risk tolerance and investment horizon before subscribing to the IPO.
