The much-anticipated Ather Energy IPO listing is scheduled for Tuesday, May 6, following the finalization of allotment on Friday, May 2. As of Monday, May 5, investors are seeing shares credited to their demat accounts, while refunds for non-allottees are being processed today as well.
Ather Energy IPO: Subscription & Allotment Snapshot
The IPO, which ran from April 28 to April 30, garnered solid interest, especially from retail investors who subscribed at 1.78 times. The breakdown is as follows:
- Retail Investors: 1.78x
- Qualified Institutional Buyers (QIBs): 1.70x
- Non-Institutional Investors (NIIs): 0.66x
- Employees: 5.43x
While interest surged on the final day, some analysts express concern about the issue’s demand quality, citing a last-minute push by QIBs.
“The final day surge from QIBs hints at an effort to support the issue amid weak overall sentiment. A flat to mildly negative listing within ±5% is expected,” said Prashanth Tapse, SVP at Mehta Equities.
Ather Energy IPO GMP Today: Grey Market Premium Trends
As of May 5, the Grey Market Premium (GMP) for Ather Energy IPO stands at ₹7, according to Investorgain.com. This places the expected listing price at around ₹328—a modest 2.18% premium over the upper IPO price band of ₹321.
Notably, the GMP has seen a downward trend over the last 14 sessions, ranging between ₹0 and ₹17. This signals limited excitement ahead of the listing date.
IPO Price Band and Offer Details
The IPO was priced between ₹304 to ₹321 per equity share (face value: Re 1). It consisted of:
- Fresh issue: ₹2,626 crore
- Offer-for-sale (OFS): 1.1 crore shares from key investors and promoters
Prominent shareholders exiting partially include NIIF II, Internet Fund III Pte. Ltd, and IITM Incubation Cell, along with co-founders Tarun Mehta and Swapnil Jain.
Fund Utilization Plan
Ather plans to utilize IPO proceeds across strategic areas:
- ₹927.2 crore: New manufacturing plant in Maharashtra
- ₹750 crore: R&D for electric two-wheelers
- ₹300 crore: Marketing
- ₹40 crore: Debt repayment
Lead Managers and Registrar
The IPO is managed by Axis Capital, HSBC Securities, JM Financial, and Nomura Financial, with Link Intime India Pvt Ltd as the registrar.
Final Thoughts
Despite a lukewarm grey market sentiment and concerns about genuine investor appetite, Ather Energy’s long-term fundamentals as a leading electric two-wheeler manufacturer could draw interest post-listing. Short-term volatility is expected, and a cautious approach is recommended for early traders.
Disclaimer: The above information is for educational purposes. Consult a certified financial advisor before making investment decisions.
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