Ather Energy IPO Receives Tepid Response on Day One, Only 16% Subscribed. Investor Enthusiasm Low, Grey Market Premium also Modest, Subscription Still Open.
Ather Energy IPO: The Ather Energy Initial Public Offering (IPO) opened on April 28, 2025, and will remain open until April 30. However, it received a lukewarm response on its first day. The subscription rate on day one was only 16%, which may concern many investors. Let's understand all the important aspects of this IPO and whether it could be a good investment opportunity.
Information about the Ather Energy IPO
Ather Energy, a prominent electric scooter manufacturer, offered its IPO at a price band of ₹304 to ₹321 per share. A lot consists of 46 shares. Therefore, investors must apply for a minimum of 46 shares, costing retail investors up to ₹14,766.
Day One Subscription
According to NSE (National Stock Exchange) data, the IPO was subscribed only 16% on the first day. This figure clearly indicates a lack of significant investor enthusiasm for the IPO. In this ₹2,981 crore IPO, the plan was to sell a total of 5,33,63,160 shares, while bids were received for only 86,09,406 equity shares on the first day.
Ather Energy IPO: Who Showed the Most Interest?
The employee reservation quota received the highest subscription, at 1.78 times its allocation. Retail investors subscribed 63% of their allocated portion. Meanwhile, Non-Institutional Investors (NII) participated at only 16%, and Qualified Institutional Buyers (QIBs) submitted a mere 5,060 bids, a significantly low number.
Grey Market Premium (GMP)
Ather Energy's IPO is seeing a muted response in the grey market. As of April 29, its shares were trading at ₹322 in the grey market, representing a premium of only ₹1 or 0.31% over the price band of ₹321.
Should you subscribe to the Ather Energy IPO?
Bajaj Broking, a brokerage firm, suggests that the Ather Energy IPO could be a good opportunity for long-term investors. The company is an expert in the electric two-wheelers and battery segment, and its b parentage adds to its strength. However, the company's financial performance has been loss-making so far, and its debt exceeds ₹1,121 crore, which could be a concern for investors.
Ather Energy IPO Details:
- Price Band: ₹304 – ₹321 per share
- Issue Size: ₹2,980.76 crore
- Lot Size: 46 shares
- Issue Open: April 28, 2025
- Issue Close: April 30, 2025
- Lead Managers: Axis Capital, HSBC, JM Financials, Nomura
- Registrar: Link Intime India Private Limited
- Listing Date: May 6, 2025
- Listing Exchange: BSE, NSE
