Ather Energy IPO Fully Subscribed On Day 3

Ather Energy IPO Issue Fully Subscribed On Day 3

SUMMARY

Ather Energy's INR 2,981 Cr IPO received bids for 5.66 Cr shares as against 5.33 Cr shares on offer, resulting in a 1.08X subscription

The issue saw decent interest from QIBs, who subscribed to the issue over 1.28 times on the final day of the bidding process

Of the total IPO proceeds, Ather has earmarked INR 927 Cr to set up E2W manufacturing factory in Maharashtra with an estimated annual production capacity of 1 Mn EV units

Electric two-wheeler maker Ather Energy’s INR 2,981 Cr IPO was fully subscribed today, with qualified institutional buyers (QIBs) making a last-minute dash for the IPO.

As of 1:24 PM, the IPO received bids for 5.66 Cr shares as against 5.33 Cr shares on offer, resulting in a 1.08X subscription, as per the BSE data.

The portion reserved for QIBs was subscribed 1.28 times, with investors placing bids for 3.70 Cr shares as against 2.89 Cr shares on offer. The issue also received decent interest from retail individual investors (RIIs). While 97.34 Lakh shares were reserved for the RIIs, they placed bids for 1.41 Cr shares, resulting in 1.46X subscription.

The non-institutional investors (NIIs) category was subscribed 0.34 times, garnering bids for 50.32 Lakh shares as against 1.46 Cr shares on offer.

Meanwhile, the employee quota was subscribed over 4.25 times, receiving bids for 4.24 Lakh shares as against 1 Lakh shares available for subscription.

Ather’s IPO, which opened for subscription on April 28, will close today. Earlier this month, the electric two-wheeler maker filed its red herring prospectus (RHP) with markets regulator SEBI to raise INR 2,981 Cr through an IPO. Of this, it has already raised INR 1,340 Cr from anchor investors, with SBI Mutual Fund leading the round.

The issue comprises a fresh issue of up to INR 2,626 Cr and an offer for sale of up to 1.10 Cr shares. Ather has fixed a price band of INR 304 to INR 321 for its IPO. Its shares are expected to list on the NSE and the BSE on May 6.

At the upper end of the price band, existing investor Tiger Global will make 8X gains on its investment in the EV company, while Caladium Investment Pte Ltd will rake in nearly 2X returns.

Of the total IPO proceeds, Ather plans to utilise INR 927 Cr to establish an electric two-wheeler manufacturing facility in Maharashtra’s Chhatrapati Sambhajinagar. The company plans to kick off production from this facility in July 2026 in a phased manner and complete it fully by March 2027. The factory is expected to have a production capacity of 1 Mn electric two-wheelers per year upon completion of both phases.

While Ather is going full steam ahead for its public listing, it is pertinent to mention that it is still a loss-making company. For the nine months ended December 2024 (9M FY25), it reported a net loss of INR 577.9 Cr. However, this was a decline of about 26% from INR 776.4 Cr in the year-ago period.

Meanwhile, its operating revenue zoomed 28% to INR 1,578.9 Cr in the first three quarters of FY25 from INR 1,230.4 Cr in the same period last year, driven by a surge in EV registrations. Ather clocked 1.31 Lakh EV registrations in FY25, as per Vahan data.

Owing to the losses, Bajaj Broking recommended that investors subscribe to Ather’s IPO with a long-term perspective.

“Despite its growth initiatives, the company has been consistently posting losses and carries significant accumulated losses… Considering its current financials, this appears to be a long-term investment story, and therefore, only well-informed investors with surplus funds and a long-term perspective may consider investing moderately,” the brokerage said.