Ather Energy, one of India’s leading electric two-wheeler makers, has launched its IPO today, marking the first major initial public offering (IPO) for the financial year 2025-26. The Ather Energy IPO, with a price band of ₹304 to ₹321 per share, has attracted significant attention. Here’s everything you need to know about the IPO, including its GMP, key details, and expert reviews to help you decide whether to apply.
1. Ather Energy IPO GMP: What is the Grey Market Premium?
As of day one, Ather Energy’s shares are available at a grey market premium (GMP) of ₹3. This indicates some level of investor optimism before the IPO opens to the public, but the market mood could shift as the subscription period progresses.
2. Ather Energy IPO Price
The Ather Energy IPO price band has been fixed between ₹304 and ₹321 per equity share. At the upper price band, the valuation is set at an EV/Sales ratio of 8x, based on estimated sales for FY25.
3. Key Dates for Ather Energy IPO
- IPO Opening Date: 25 April 2025
- IPO Closing Date: 30 April 2025
- IPO Allotment Date: 1 May 2025 (or 2 May 2025 due to market holiday)
- Listing Date: 6 May 2025
4. Ather Energy IPO Size and Lot Details
The total issue size is ₹2,981.06 crore, with ₹354.76 crore allocated for offers for sale (OFS). Investors can apply for the IPO in lots, with each lot comprising 46 shares. This ensures a minimum investment of around ₹13,984 at the lower price band.
5. Subscription Status as of Day 1
As of 4:00 PM on the first day of bidding, the IPO had been subscribed 0.15 times. The retail portion had been subscribed 0.60 times, while the NII portion was subscribed 0.15 times, and the employee’s reserved quota was filled 1.67 times.
6. Ather Energy IPO Review: Should You Apply?
Expert opinions on whether to apply for Ather Energy’s IPO vary:
- Arihant Capital: “Ather Energy is well-positioned in India’s rapidly growing electric two-wheeler market. The company has a premium product positioning and robust R&D capabilities. The issue is priced attractively, and we recommend ‘Subscribe for listing gains’.”
- Ventura Securities: “Ather Energy’s innovative approach, including its Ather Grid and Factory 3.0 expansion plans, make it a promising contender in the E2W market. We recommend subscribing for listing gains.”
- HEM Securities: “While Ather has strong potential, the valuations seem fairly priced compared to its peers. We advise waiting for the listing to assess market conditions before committing funds.”
7. Should You Apply or Wait?
If you’re looking for short-term gains, applying for the Ather Energy IPO could be beneficial, especially considering the company’s strong market positioning and upcoming growth initiatives. However, some analysts recommend waiting until the listing to evaluate market conditions and ensure the issue is not overvalued. Given the current macroeconomic environment, it’s wise to exercise caution and consider the IPO’s long-term potential.
Ventura Securities has also recommended a ‘subscribe’ tag to the public issue, saying, “We recommend you subscribe for listing gains. Its premium focus, Ather Grid, and R&D-driven innovation differentiate it from competitors. The company is going through major capex with its Ather Factory 3.0 (will have 10 Lakhs unit capacity by mid-FY26). This comes despite challenges such as subsidy cuts and low capacity utilization.”
Conclusion
The Ather Energy IPO presents an exciting opportunity, especially with its focus on electric vehicles in a rapidly growing market. The company’s innovative technology and expansion plans suggest strong growth prospects. However, as with any investment, it’s crucial to consider your risk appetite and investment horizon. Investors seeking listing gains may consider applying, but those with a more conservative approach might prefer to wait for the listing date before making a decision.
