Retail investors remained the most consistent participants, subscribing 1.89 times their allotted quota. Non-institutional investors (NIIs) subscribed to 69% of their portion, while qualified institutional buyers (QIBs) showed strong interest in the final stretch, subscribing 1.76 times their allocation.
GMP Slips Further
Despite the improved bidding, grey market sentiment remained muted. Ather’s unlisted shares were trading at Rs 322, just Rs 1 above the upper end of the Rs 304–321 price band—reflecting a negligible premium of 0.31%.
The Grey Market Premium (GMP) has been on a steady decline since the IPO opened, slipping from Rs 7 pre-issue, to Rs 3 on Monday, and then to around Rs 1 by Tuesday. The fall is largely attributed to last week’s broader market weakness, though some analysts believe sentiment could recover if equity markets stabilise.
Key Offer Details
The IPO comprises a fresh issue worth Rs 2,626 crore and an offer-for-sale (OFS) of Rs 355 crore. At the upper price band, Ather Energy is valued at around $1.4 billion—a 44% markdown from earlier fundraising targets, reflecting cautious investor sentiment in the current global environment.
Anchor investors have already committed Rs 1,340 crore, with participants including SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Investment Authority.The Bengaluru-based electric two-wheeler manufacturer plans to use the proceeds to set up a new manufacturing facility in Maharashtra, repay borrowings, and invest in R&D, marketing, and other corporate purposes.
Analysts Divided on Valuation: Apply or Not?
Despite tepid demand indicators, analysts remain cautiously optimistic.Geojit Financial Services stated, “At the upper price band of Rs 321, Ather’s EV/Sales ratio of 7.1x (FY24) appears expensive. However, as a pioneer in the E2W segment and in a strong growth phase, we recommend a ‘Subscribe’ rating for high-risk investors with a long-term view.”
Arihant Capital took a slightly more bullish stance: “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 gain’ rating.”
Backers and Business Strategy
Known for its in-house R&D and premium positioning, Ather Energy recently expanded its portfolio with the launch of the Ather Rizta. One of its early institutional backers, IIT Madras, holds 15.58 lakh shares and is expected to realize around Rs 50 crore from the listing.
With the issue set to close today and QIB interest still subdued, all eyes are on a potential late surge in bidding—often driven by institutional investors—to help Ather Energy’s IPO cross the finish line.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
