Ather Energy IPO fully subscribed on Day 3; Check GMP, IPO allotment dates and 3 reasons why investors are cautious- Highlights

Known for premium scooters like the Ather 450 and the newly launched Ather Rizta, the company isn’t just about shiny bikes. Ather also makes its own battery packs, has built a charging network (Ather Grid), and even runs on its in-house software platform (Atherstack).

Currently, Ather’s Hosur plant in Tamil Nadu can roll out 4.2 lakh scooters and 3.8 lakh battery packs a year. With the upcoming Maharashtra facility, the total manufacturing muscle will ramp up to 14.2 lakh units annually.

Read more: Is Ather Energy IPO a Subscribe or Avoid? Issue opens today, GMP, price band and other key details you need to know

Ather plans to use the fresh funds for:

– Setting up a new electric two-wheeler factory in Maharashtra,

– Paying off or reducing some debts,

– Fueling research and development,

– Marketing activities, and

– Other general business needs.

The IPO window opened on April 28, and closes on April 30,. If all goes as planned, Ather Energy will officially list on the NSE and BSE on May 6.

Before the IPO gates even opened to the public, Ather raised a hefty Rs 1,340 crore from anchor investors

Ather Energy is aiming to raise around Rs 2,981 crore through this IPO. Out of this, about Rs 2,626 crore will come from fresh shares, while the rest will be an Offer for Sale (OFS) where existing investors cash out part of their stake.

The shares are priced between Rs 304 and Rs 321 each. For retail investors, the minimum bet is 46 shares, meaning you’ll need to invest at least Rs 13,984 if you’re jumping in at the lower price.

In early subscription trends, the employee quota stole the spotlight, getting oversubscribed by 1.78 times. Meanwhile, retail investors showed decent interest, bidding for about 63% of their allotted portion. Non-institutional investors (NIIs) lagged behind, covering just 16% of their share. The qualified institutional buyers (QIBs), however, remained largely on the sidelines, placing only 5,060 shares against the hefty 2,89,27,363 shares reserved for them.

Ather Energy subscription rates on Day 1 were comparatively muted. The issue has been subscribed 16% on Day 1. This is significantly lower when we compare it against another EV peer that made a debut last year. The Ola Electric IPO was subscribed about 35% on the first of the issue launch.

The retail portion has been subscribed 0.69 times so far. This is also significantly low if compared against Ola, that saw the retail section garnering a whopping 1.57 times subscription on Day 1 of listing.

Ather Energy, has opened its doors to the primary market with its highly anticipated initial public offering (IPO). This marks the first major IPO of the financial year 2025-26. With an IPO price band set between Rs 304 and Rs 321 per share, Ather aims to raise up to ₹2,981 crore.

The issue, which is open until April 30, ha raised Rs 1,340 crore from anchor investors. Adding to it, the company’s shares are currently trading at a grey market premium (GMP) of Rs 1.

Retail investors bid for 63.98 lakh shares on day 1 — with the portion subscribed 0.69x on Monday.

The GMP remained flat on Monday as the Ather Energy IPO saw 16% subscriptions.

Arihant Capital highlighted Ather’s position in India’s fast-growing EV market and its early mover advantage. It noted that with new launches like the Ather Rizta and the upcoming Factory 3.0, the company is scaling up fast. According to Arihant Capital’s report, “We are recommending a ‘Subscribe for listing gain’ rating for this issue.”

Ventura Securities also issued a similar message and remained positive on Ather’s focus on premium products, its Ather Grid charging network, and ongoing investments in R&D.

In its note, Ventura said, “Company is going through major capex with its Ather Factory 3.0… This comes despite challenges such as subsidy cuts and low-capacity utilization.”

The issue is a mix of a fresh issue worth Rs 2,626 crore, and Offer for Sale (OFS) of 1.1 crore shares by existing shareholders. The allocation of the issue is divided as – 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors. The three-day subscription window will close on April 30, and the shares will list on NSE and BSE on May 6.

The Initial Public Offering of Ather Energy has been subscribed 0.17 times at 7:20 pm. The Retail Individual Investors category has been subscribed 0.69 times while the employee category has now been booked 1.84 times.

The GMP or the Grey Market premium remained at Re 1 (0.31%) at 6:55 pm. The GMP is an indicator of how the company might react on the day of listing. A negative or lower GMP indicates a relatively less chance of the IPO listing at a significant premium to the issue price.

Many brokerages took a cautious stance on Monday — citing its high valuation and financial challenges. Deven Choksey believes that while Ather Energy has a strong innovation and engineering base, its path to profitability is fraught with challenges. It also advises that investors could consider buying the stock at a more attractive valuation in the secondary market.

Read more: Ather Energy IPO Day 1: Why some top brokers are saying “Avoid” despite EV buzz

The Ather Energy Limited IPO began on Monday with the employee segment being fully booked within hours. The company has raised Rs. 1340 crore from 36 anchor investors at share the upper price band.

Prominent funds amongst the Foreign institution investors included Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority (ADIA), Eastspring Investments and Morgan Stanley Investment Management (MSIM). SBI MF, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, ITI MF and Union MF along with, Tata Investment etc were amongst the prominent domestic funds in anchor book.

Here’s how the numbers looked at 5:00 pm:

QIB – 0.00x

NII – 0.16x

Retail – 0.63x

Employee reservation – 1.78x

Total – 0.16x

The Initial Public Offering of Ather Energy has been subscribed 0.17 times at 5:20 pm. The Retail Individual Investors category has been subscribed 0.68 times while the employee category has now been booked 1.81 times

The three day subscription window for Ather Energy IPO is expected to close on April 30. The basis of allotment shares will tentatively be finalised on May 2 with shares listing (tentatively) on the NSE and BSE on May 6.

Ather Energy has the ability to pioneer new technologies. It has a vertically integrated approach to product design with strong in-house R&D capabilities. Plus, it has a software-defined ecosystem that drives customer engagement and margins. It also has a scalable technology platform enabling accelerated product launches.

Athe Energy’s first producut, Ather 450, was launched in June 2018. The company introduced connected features through a 3G SIM card, touchscreen dashboard, aluminium chassis, and cloud integration for the first time in the E2W (electric two wheeler) industry in India.

Ather Energy is well-placed to capitalise growth in E2W (electric two wheeler) industry led by strong DNA of innovation and engineering, but the path to profitability seems long and full of challenges, said Deven Choksey in a research note. Although, Ather “Rizta” and to be launched “EL platform” are expected to play a pivotal role in solidifying its market position.

Ather Energy’s financials paint a concerning picture. According to a Bajaj Broking report, the company posted a hefty net loss of Rs 1,059.7 crore in FY24 and Rs 577.9 crore for the first nine months of FY25. “While Ather Energy is making strides in expanding its manufacturing capacity, its financial health remains weak,” the brokerage firm pointed out in its report.

The report further highlights that Ather’s negative earnings per share (EPS) and return on net worth (RoNW) underline the ongoing financial strain. “Given its accumulated losses and high borrowings, this IPO is a long-term investment story,” Bajaj Broking added.

There’s a heavy demand by employees for the IPO of Ather Energy. The segment has been booked 1.51 times as of 2.30 PM. The IPO’s retail portion was subscribed 0.55 times during the same time. The NII segment has been subscribed 0.15 times. However, the QIBs (qualifies institutional buyers) are yet to jump in.

India’s electric two wheeler market is expected to grow at a compounded annual growth rate of 41% to 44% as electric two wheeler penetration is expected to increase to 35-40% by FY31 from 5.1% in FY24.

The Ather Energy IPO is backed by some of the biggest names in the financial world. Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India) are leading the way as the book-running lead managers for the issue. Handling the backend smoothly, Link Intime has been appointed as the registrar for the IPO.

Ather Energy has launched a new Halo smart helmet that offers features such as wireless charging as well as seamless connectivity, which is likely to help in improving the sales volume. Also, the company is focusing on improving the ecosystem by implementing EV charging stations.

Ather Energy has an annual installed capacity of 4.2 lakh electric two-wheelers and 3.8 lakh battery packs at its Hosur facility in Tamil Nadu. Ather is building a dedicated E2W hub in Maharashtra to enhance its overall production capacity to 14.2 lakh units.

If you are eyeing the Ather Energy IPO, here is what you need to know. The minimum lot size is 46 shares, and retail investors must invest at least Rs 13,984. For small non-institutional investors (sNII), the minimum bid is 14 lots or 644 shares worth Rs 2,06,724. Meanwhile, big non-institutional investors (bNII) need to apply for 68 lots or 3,128 shares, requiring Rs 10,04,088.

Adding a special touch, Ather Energy has reserved up to 1 lakh shares for its employees. They also get a sweet Rs 30 discount per share on the final issue price.

At the upper price band of Rs 321, Ather’s enterprise value to its sales ratio of 7.1x (FY24) appears expensive, said Geojit Investments. “However, as a pioneer in the E2W segment, the company is in a strong growth phase with robust R&D and new technological platforms.” The broker has given a ‘Subscribe’ rating for the high-risk investors as the company faces profitability challenges and valuation concerns.

The GMP or the Grey Market premium of the Ather Energy IPO is significantly muted at 1 rupee or a mere 0.31%, last updated at 11:57 am. The GMP is generally an indicator of the expectation in the market. The muted GMP is also seen as a potential gauge of the interest in the IPO. A lower GMP suggests relatively less chance of the IPO listing at a significant premium to the issue price. The issue price for the Ather Energy IPO is ranging between Rs 304-321 per share.

Read more on brokerage views on the Ather Energy IPO

Ather Energy’s much-anticipated IPO aims to raise a total of Rs 2,981.06 crore. The offering is divided into two components – a fresh issue of 8.18 crore shares worth Rs 2,626.30 crore and an offer for sale of 1.11 crore shares, valued at Rs 354.76 crore. With a price band of Rs 304 to Rs 321 per share, the IPO stands as the first mainboard issue in FY26.

Before the public subscription opened, Ather Energy raised Rs 1,340.03 crore from anchor investors. The IPO bidding process began on April 28, and will close on April 30.

Read more: Is Ather Energy IPO a Subscribe or Avoid? Issue opens today, GMP, price band and other key details you need to know