SOURCE : NEW18 NEWS
Last Updated:April 30, 2025, 15:40 IST
Unlisted shares of Ather Energy Ltd are currently trading at Rs 322 apiece in the grey market, which is just 0.31 per cent premium over the upper IPO price of Rs 321.
Ather Energies IPO.
Ather Energy IPO: The initial public offering of Ather Energy Ltd, which is going to be closed today at 5 pm, has received subdued investor interest so far. Till 3:04 pm on the final day of bidding on Wednesday, the Rs 2,981-crore IPO received a 1.39 times subscription garnering bids for 7,11,83,758 shares as against 5,11,22,370 shares on offer.
The retail and NII participation stood at 1.73 times and 0.62 times, respectively. The QIB category, which comprises mutual funds and pension funds, has received a 1.66 times subscription so far.
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The Ather Energy IPO was opened for public subscription on Monday (April 28) and will be closed today, Wednesday. The price band of the IPO has been fixed at Rs 304 to Rs 321 apiece.
Ather Energy IPO GMP
According to market observers, unlisted shares of Ather Energy Ltd are currently trading at Rs 322 apiece in the grey market, which is just 0.31 per cent premium over the upper IPO price of Rs 321. It indicates a flat or negative return for investors on May 6, the tentative listing date.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Ather Energy IPO: Analysts’ Recommendation
Most brokerage firms have recommended to subscribe for the IPO for the long term. Several brokerages advised only well-informed investors with surplus funds to consider Ather’s IPO for a long-term horizon.
According to Bajaj Broking, the company has been experiencing consistent losses and has significant accumulated deficits. Its financial performance has led to a negative Price-to-Earnings (PE) ratio, and borrowings were over Rs 1,121 crore as of December 31, 2024, which raises concerns. Nonetheless, the company’s strong parentage is a key advantage.
Given the current financial situation, Bajaj Broking considers this a long-term investment and advises only well-informed investors with surplus funds to consider Ather’s IPO for a long-term horizon.
Ventura Securities has given a ‘Subscribe for listing gains’ rating, noting Ather Energy’s premium focus, Ather Grid, and innovation-driven R&D as differentiators from its competitors. The company is undergoing significant capital expenditure with its Ather Factory 3.0, which aims to reach 10 lakh units by mid-FY26, despite challenges like subsidy cuts and low-capacity utilisation.
About Ather Energy
Ather Energy Limited, incorporated in 2013, is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. The company operates as a vertically integrated EV manufacturer with a focus on product and technology development.
Ather Energy’s Financials
As of December 31, 2024, the company’s assets stood at Rs 2,172 crore, up from Rs 818.6 crore in March 2022. Revenue increased from Rs 413.8 crore in FY22 to Rs 1,617.4 crore in the nine months ended December 2024, indicating strong sales momentum. However, the company continues to report losses, with a net loss of Rs 577.9 crore for the nine-month period ending December 2024, compared to a loss of Rs 1,059.7 crore in FY24 and Rs 864.5 crore in FY23.
