Ather Energy IPO: Check allotment status, GMP, and other details ahead of listing tomorrow 

Shares of Ather Energy are set to make debut on the stock exchanges on May 6 after successfully raising ₹2,981 crore via initial public offering (IPO) route, which opened for subscription between April 28-30. Ather Energy IPO allotment has already been finalised, and those who applied for the issue can check allotment status online on the websites of registrar Link Intime India, the NSE and the BSE. Initiation of refunds for non-allottees is expected to be processed today.

A day ahead of listing, Ather Energy shares were commanding grey market premium (GMP) of ₹7 in the unlisted market, indicting a flat-to-higher debut on the BSE and NSE. Ather Energy IPO GMP has improved significantly in the last few days, from zero on May 2. The GMP touched a peak of ₹17 on April 22, days ahead of announcing issue size and price band for the IPO.

Ather Energy IPO, which were offered at a price range of ₹304-321 per share, was subscribed 1.5 times as investors applied for 7.67 crore equity shares worth ₹2,463.65 crore (at the upper end of the price band), as compared to the offer size of 5.11 crore shares. The issue received subdued responses on the first two days of bidding, with the IPO booking 0.17% on Day 1 and 30% on Day 2.

The Bengaluru-headquartered pure-play EV company has fixed lot size at 46 equity shares and in multiples thereafter. The minimal application amount for one lot for retail investor was ₹14,766 (at upper end of price band) and maximum was
₹1,91,958 for 13 lots.

The portion reserved for qualified institutional buyers (QIBs) was booked 1.76 times as they started bidding on the final day of the offer. The IPO received decent support from retail investors, as the quota reserved for them subscribed 1.89%, while that of non-institutional investor (NII) was booked just 69%. Meanwhile, employee’s quota received maximum bidding of 5.43 times. Ather had reserved up to 75% of the public issue for QIB, 15% for NII, and 10% for retail investors. The employee quota was reserved up to 100,000 equity shares, which will be offered at a discount of ₹30 per equity share.

Despite having a first-mover advantage, Tarun Mehta and Swapnil Jain co-promoted EV maker received a tepid response from investors, especially from non-institutional investor (NII) as the quota reserved for them failed to fully subscribe, which can be attributed to various factors, including higher investment risks and capital lock-in.

The electric scooter startup, backed by investors including Hero MotoCorp, Sachin Bansal, Binny Bansal, Tiger Global, and the National Investment and Infrastructure Fund (NIIF), proposes to utilise the net proceeds of the fresh issue towards funding of capital expenditure requirements for establishment of an electric two-wheeler factory in Maharashtra. A part of the capital will be invested in research and development; repayment or pre-payment, in full or part, of certain borrowings availed by the company; expenditure towards marketing initiatives; and general corporate purposes.

Notably, this mainboard IPO comes after nearly two month, as Quality Power was the last company to list its shares on the domestic bourses on February 24, 2025. Since then, not a single mainboard IPO has been launched, marking a complete standstill in primary market activity, a situation which was last witnessed in May 2023.

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