The initial public offering (IPO) of Ather Energy was subscribed just over 12% on the first day of bidding, indicating a slow start to the nearly Rs 3,000-crore public offer. Retail investors led the bidding, with their category subscribed 46%, while the Non-Institutional Investors (NII) category was subscribed 14%. The subscription window is open until April 30, with listing expected on May 6.
The Bengaluru-based electric scooter manufacturer launched its IPO earlier today, marking the first major mainboard listing of FY26. The IPO comprises a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of Rs 355 crore, with shares priced between Rs 304 and Rs 321 apiece.
Despite the subdued grey market premium (GMP) — currently below 1% — analysts remain optimistic about Ather’s prospects, citing its strong position in the electric two-wheeler market, robust in-house R&D, and recent product launches like the Ather Rizta.
Also Read: Ather Energy's Rs 2,981-crore IPO opens for subscription. Should you bid amid weak GMP?
"At the upper band of Rs 321, the issue is valued at an EV/sales ratio of 8x, based on 9MFY25 sales of Rs 1,579 crore. We are recommending a 'Subscribe for listing gains' rating for this issue," said Arihant Capital.
At the upper price band, the IPO valuation has been adjusted significantly to approximately $1.4 billion, a 44% reduction from its earlier target, reflecting a cautious approach amid global market volatility.
The company has secured Rs 1,340 crore from anchor investors, including SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Investment Authority.
Proceeds from the fresh issue will be used to establish a new manufacturing facility in Maharashtra, repay certain borrowings, and invest in research and development, marketing, and general corporate purposes.
From the IPO, the company’s early backers, such as IIT Madras, are set to benefit significantly; the institute’s incubation arms hold 15.58 lakh shares and are expected to earn around Rs 50 crore from the IPO.
Ather Energy is strongly positioned in India’s fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and robust in-house R&D and technology ecosystem.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Bengaluru-based electric scooter manufacturer launched its IPO earlier today, marking the first major mainboard listing of FY26. The IPO comprises a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of Rs 355 crore, with shares priced between Rs 304 and Rs 321 apiece.
Despite the subdued grey market premium (GMP) — currently below 1% — analysts remain optimistic about Ather’s prospects, citing its strong position in the electric two-wheeler market, robust in-house R&D, and recent product launches like the Ather Rizta.
Also Read: Ather Energy's Rs 2,981-crore IPO opens for subscription. Should you bid amid weak GMP?
"At the upper band of Rs 321, the issue is valued at an EV/sales ratio of 8x, based on 9MFY25 sales of Rs 1,579 crore. We are recommending a 'Subscribe for listing gains' rating for this issue," said Arihant Capital.
At the upper price band, the IPO valuation has been adjusted significantly to approximately $1.4 billion, a 44% reduction from its earlier target, reflecting a cautious approach amid global market volatility.
The company has secured Rs 1,340 crore from anchor investors, including SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Investment Authority.
Proceeds from the fresh issue will be used to establish a new manufacturing facility in Maharashtra, repay certain borrowings, and invest in research and development, marketing, and general corporate purposes.
From the IPO, the company’s early backers, such as IIT Madras, are set to benefit significantly; the institute’s incubation arms hold 15.58 lakh shares and are expected to earn around Rs 50 crore from the IPO.
Ather Energy is strongly positioned in India’s fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and robust in-house R&D and technology ecosystem.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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