Ather Energy IPO: A New Era for Electric Mobility in India

The financial year 2025-26 has kicked off with a significant event in the Indian primary market: the initial public offering (IPO) of Ather Energy Limited. This marks the first mainboard IPO of the year, and it has generated considerable excitement among investors and market watchers alike.

Key Details of the Ather Energy IPO

Ather Energy, a prominent player in the electric two-wheeler (E2W) segment, has set its IPO price band between ₹304 and ₹321 per equity share. The public issue opened today and will remain accessible until April 30, 2025. The company has already garnered ₹1,340 crore from anchor investors, indicating strong institutional interest ahead of the public offering.

Subscription Status

As of 4:00 PM on the first day of bidding, the IPO has seen varied levels of subscription. The overall book build has been subscribed 0.15 times, with the retail portion attracting more interest at 0.60 times. The non-institutional investor (NII) segment has been filled 0.15 times, while the employee reserved quota has been oversubscribed at 1.67 times.

Comprehensive IPO Breakdown

Here are the top ten details you should know about the Ather Energy IPO:

1. Grey Market Premium (GMP): Currently, shares of Ather Energy are trading at a premium of ₹3 in the grey market, reflecting positive sentiment among traders.

2. IPO Price Band: The price band for the public issue is set between ₹304 and ₹321 per equity share.

3. IPO Timeline: The public issue opened today and will close on April 30, 2025.

4. Allotment Date: The likely date for share allotment is May 1, 2025. However, due to a stock market holiday, the finalization may extend to May 2, 2025.

5. IPO Size: The total size of the book-build issue is approximately ₹2,981.06 crore, which includes ₹354.76 crore reserved for the offer for sale (OFS).

6. Lot Size: Investors can apply in lots, with one lot comprising 46 shares of Ather Energy.

7. Registrar: Link Intime India Private Limited has been appointed as the official registrar for the IPO.

8. Lead Managers: The public issue is being managed by Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisors.

9. Listing Date: The anticipated listing date for the public issue is April 6, 2025.

Should You Invest in Ather Energy IPO?

Positive Outlook from Analysts

Several analysts have given a "buy" tag to the Ather Energy IPO, citing its strong positioning in India’s rapidly growing electric two-wheeler market. Arihant Capital highlights the company’s early-mover advantage, premium product offerings, and robust in-house research and development capabilities. The recent launch of the Ather Rizta has further expanded its customer base, and the upcoming Factory 3.0 is expected to significantly boost production capacity from 420,000 to 1.42 million units by FY27.

Ventura Securities also recommends subscribing for listing gains, emphasizing Ather’s focus on premium products and R&D-driven innovation, which set it apart from competitors.

Caution from Other Analysts

On the flip side, some analysts urge caution. Astha Jain from HEM Securities suggests waiting for the listing before making any investment decisions. She points out that while Ather’s E2Ws are positioned at a premium price, the valuations appear to be in line with close peers, making it seem fully priced at the current levels. Jain emphasizes that the IPO’s premium listing will depend on market conditions and macroeconomic factors, which can be unpredictable.

Conclusion

The Ather Energy IPO represents a significant milestone for the electric mobility sector in India. With strong institutional backing and a promising growth trajectory, it offers an intriguing opportunity for investors. However, potential investors should weigh the optimistic outlook against the cautionary advice from analysts. As always, it is advisable to consult with certified financial experts before making any investment decisions, especially in a rapidly changing market landscape.