Ather Energy IPO Day 2: Subscription status, GMP trends, price band to review —Should you apply?

Retail investors led the demand, subscribing 94% of their allocated quota, while non-institutional investors (NIIs) subscribed 19%. The Rs 3,000-crore offering closes on April 30, with listing scheduled for May 6.

In the grey market, Ather Energy’s unlisted shares were trading around Rs 322 on Tuesday, reflecting a muted premium of just Rs 1—or 0.31%—over the upper end of the price band at Rs 321, according to sources tracking unofficial trading.Read More: Sensex & Nifty are healing. But will this revive the Rs 2 lakh crore IPO pipeline lying in dumps?

The Grey Market Premium (GMP) has weakened steadily. Before the IPO opened, the GMP stood at Rs 7, dropped to Rs 3 by Monday, and slipped further to about Rs 1 by Tuesday. Market observers attributed the decline to selling pressure on Dalal Street last Friday, but noted sentiment could improve with a market turnaround.

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Ather Energy’s IPO consists of a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) worth Rs 355 crore, with a price band set between Rs 304 and Rs 321 per share. The company has already raised Rs 1,340 crore from anchor investors including SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Investment Authority.

At the upper band, the electric two-wheeler maker’s valuation stands around $1.4 billion—a sharp 44% cut from its earlier target amid cautious global market sentiment.

Proceeds from the fresh issue will be used for establishing a new manufacturing facility in Maharashtra, repaying certain borrowings, and investing in research and development, marketing, and general corporate purposes.

Also Read: Ather Energy’s Rs 2,981-crore IPO opens for subscription. Should you bid amid weak GMP?

Despite the soft grey market trend, analysts remain positive on Ather Energy’s fundamentals. “At the upper band of Rs 321, the issue is valued at a EV/sales ratio of 8x, based on 9MFY25 sales of Rs 1,579 crore. We are recommending a Subscribe for listing gain rating for this issue,” said Arihant Capital.

Ather, known for its strong in-house R&D and early mover advantage in the premium electric scooter market, has recently expanded its product lineup with models such as the Ather Rizta.

IIT Madras, one of Ather’s early backers through its incubation arms, holds 15.58 lakh shares and is expected to realise around Rs 50 crore from the listing.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)