Ather Energy’s IPO Sparks Interest, Hits 16% Subscription on Day 1

Ather Energy’s ₹2,981 crore IPO opened with 16% overall subscription on April 28, driven by 63% retail demand and 1.78x employee oversubscription, while QIBs stayed cautious. The electric two-wheeler maker aims to raise funds for a new Maharashtra factory, debt repayment, and R&D, pricing shares at ₹304-321 apiece.

 

Key highlights:

 

Retail portion: 61.25 lakh shares bid against 97.34 lakh offered.

 

NIIs: 0.16x subscribed; QIBs yet to participate.

 

Valuation: ~₹11,956 crore at the upper band, 8x EV/sales (9MFY25).

 

Losses: ₹577.9 crore net loss (9M FY25); ₹1,121.6 crore debt as of Dec 2024.

 

Analysts remain divided: Ventura Securities recommends “subscribe for listing gains”, while others flag high valuation and subsidy risks. Shares list on May 6.

 

Sources: Business Standard, Moneycontrol, Inc42