With all of the shares purchased on the last day of bidding, Ather Energy, a producer of electric two-wheelers, successfully concluded its ₹2,981 crore IPO. For Ather as well as India’s electric vehicle (EV) sector, which is quickly attracting investor attention, the IPO represents a momentous occasion.
Solid Retail Interest Pushes IPO Over the Line
Ather’s IPO, which ran from April 25 to April 30, saw bids for 5.42 crore shares against 5.33 crore shares on offer, translating into an overall subscription of 1.02 times by 1:20 PM on the closing day.
Retail Individual Investors (RIIs) came out in strong support, subscribing 1.45 times their allotted quota. On the other hand, the Non-Institutional Investor (NII) segment remained relatively muted, with only 34% subscription. However, a surge in demand towards the end saw some segments of the NII category oversubscribed at 1.20x, indicating last-minute bullishness.
Anchor Investors Show Early Confidence
Prior to the IPO opening for public bidding, Ather Energy raised a substantial ₹1,340 crore from anchor investors, signaling early confidence in the EV maker’s long-term vision and fundamentals. While the overall subscription numbers were not explosive, anchor participation helped build early momentum and likely contributed to boosting retail sentiment.
IPO Structure and Valuation
The IPO consisted of a fresh issue of ₹2,626 crore and an Offer-for-Sale (OFS) of 1.1 crore equity shares by promoters and early investors. With the price band set at ₹304–₹321 per share, Ather’s IPO pegs the company’s valuation at ₹11,956 crore at the upper end.
This makes Ather the first mainboard IPO of the FY2025–26 financial year and only the second electric two-wheeler company in India to go public, following Ola Electric’s ₹6,145 crore IPO in August 2024.
Grey Market Sentiment Remains Flat
Despite a decent subscription, the grey market premium (GMP) for Ather’s shares has remained tepid. As of April 30, GMP stood at just Re 1 above the upper band price of ₹321, suggesting a modest 0.31% listing gain.
While this points to neutral sentiment in the short term, it also implies that the IPO is fairly priced, leaving potential room for upside once the company starts delivering on its business growth post-listing.
What’s Next for Ather Energy?
With the additional money raised from the IPO, Ather intends to increase production capacity, create new EV models, fortify its infrastructure for charging, and make R&D investments. Long-term investor returns will depend on Ather’s capacity to scale effectively while controlling costs, especially in light of the competitive environment and the involvement of Ola Electric, Bajaj, and TVS.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will both list on Tuesday, May 6, 2025. Given the subdued GMP, all eyes will be on the stock’s debut performance.
Ather’s Public Market Journey Begins
The Ather Energy IPO underscores growing investor interest in India’s clean mobility space. While subscription figures weren’t blockbuster, they were steady, driven by strong retail participation and institutional confidence.
As the company enters the public markets, it now carries the expectations of not just early backers and retail investors, but also the broader EV ecosystem in India that looks to Ather as a torchbearer of innovation, sustainability, and growth.
Verdict:
Ather Energy’s IPO marks a cautious yet confident beginning to FY26’s mainboard market activity. With fundamentals in place and sectoral tailwinds behind it, Ather’s journey post-listing will be one to watch—both for investors and India’s EV revolution.
Conclusion:
In conclusion, Ather Energy’s IPO marks a significant milestone not just for the company but for India’s growing electric vehicle ecosystem. While the overall subscription was moderate and the grey market sentiment flat, the strong response from retail and anchor investors signals confidence in Ather’s long-term potential. As the company gears up for its stock market debut on May 6, all eyes will be on how it delivers on its promises of innovation, scale, and sustainable mobility in a rapidly evolving EV landscape.
