Ather Energy IPO sees 1.43x subscription as QIBs rush in on final day; retail bids at 1.78x

The ₹2,981-crore initial public offering (IPO) of Ather Energy saw a positive response on the last day, subscribing 1.43x by Day 3 as qualified institutional buyers (QIBs) pushed hard, and the category saw 1.7 times subscription.

The QIBs, which stayed away on the first two days of bidding, participated strongly on the last day, while the issue continued to garner steady support from the retail investors quota, which was subscribed 1.78x. The non-institutional investors’ (NIIs) category was subscribed to just 66% as of Day 3, while employees’ quota saw the most aggressive subscription at 543%. Ather Energy IPO, being offered at a price band of ₹304-321 per share, was subscribed 1.43 times as 7,65,44,046 shares were bid for against 5,33,63,160 on offer.

"Ather Energy has jump-started India’s FY26 Mainboard IPO season, garnering retail investor response (around ₹562 crore) plus HNI-NII investor response (₹309 crore) of over ₹871 crore amidst geopolitical turmoil and volatile stock markets," a statement says.

Institutional demand was close to ₹2,915 crore, including an anchor investor of ₹1,340 crore and qualified institutional oversubscription of ₹1,575 crore.

The company has reserved up to 75% of the public issue for QIB, 15% for NII, and the remaining 10% for retail investors. The employee quota is reserved up to 100,000 equity shares, which were offered at a discount of ₹30 per equity share.

The grey market premium (GMP) of Ather Energy shares in the unlisted market stands at ₹1, dropping sharply from ₹17 on April 22, albeit it has improved from the zero level touched on April 27, reflecting cautious market sentiment. This can be attributed to various factors, including the company's financial health and lack of public excitement amid fragile market conditions.

The electric vehicle maker IPO is a combination of fresh equities and offer for sale (OFS) by selling shareholders. The shares of the EV startup are expected to be listed on the BSE and NSE on May 6, 2025.

Ather Energy is engaged in the design, development, and manufacturing of electric two-wheelers and supporting infrastructure. Its product lineup includes the Ather 450x and Ather 450s premium electric scooters equipped with proprietary lithium-ion battery packs, fast-charging capabilities, and a connected dashboard that offers navigation, diagnostics, and over-the-air updates. These models cater primarily to urban commuters seeking performance, efficiency, and low maintenance.

The company also operates the Ather Grid, a nationwide fast-charging network that enhances user convenience and supports its growing customer base. Its manufacturing operations are currently based out of its plant in Hosur, Tamil Nadu, with a new facility, Factory 3.0, under development at Chhatrapati Sambhaji Nagar, Maharashtra. As of FY24, Ather held an 11.5% market share in India’s electric two-wheeler segment, making it the third-largest E2W manufacturer by retail sales.