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The much-awaited Ather Energy IPO, which opened for public subscription, saw muted demand on the first day of the public issue launch, generating only 16% of the total bids on Day 1. The
non-institutional investor (NII) portion was subscribed 0.16 times, while the retail investor portion was subscribed 0.63 times.
In the Qualified Institutional Buyers(QIBs) category, only 5,060 bids were received against 2,89,27,363 shares on offer. In NII, bids were placed for 23,08,326 shares against 1,46,01,478 on
offer, while 61,18,460 bids were placed in the retail quota against 97,34,319 on offer. In the employees' category, 1,77,560 bids were placed against 1,00,000, the only category that was
oversubscribed at 1.78 times.
In the first three hours of the opening, the issue had subscribed marginally at 0.08x.
The company has reserved up to 75% of a public issue for QIB, 15% for NII, and the remaining 10% for retail investors. The employee quota has been reserved up to 100,000 equity shares, which
will be offered at a discount of ₹30 per equity share.
The weak response to Ather Energy IPO was in line with Street expectations as suggested by the falling grey market premium (GMP) of the electric two-wheeler (E2W) maker’s shares in the
unlisted market. The GMP dropped to zero ahead of the opening of the IPO, from its peak of ₹17 on April 22, to ₹10 on April 23, and further to ₹3 on April 26. This can be attributed to
various factors, including the company's financial health and lack of public excitement amid fragile market conditions.
The three-day IPO of the EV startup will close on April 30, while shares are expected to be listed on the BSE and NSE on May 6, 2025. The electric vehicle maker has set a price band of
₹304-321 per share for its IPO, which is a combination of fresh equities and offer for sale (OFS) by selling shareholders. The IPO of Tarun Mehta and Swapnil Jain co-promoted firm comprises
fresh equities worth ₹2,626 crore and OFS of up to 1.1 crore shares, which at the upper end of the price band amounts to around ₹355 crore.
The lot size is 46 equity shares and in multiples thereafter, which means the minimal application amount for one lot for the retail investor would be ₹14,766 (at the upper end of the price
band).