Ather Energy, a prominent player in the electric vehicle (EV) sector, has launched its initial public offering (IPO), creating buzz among investors. The company is looking to raise ₹2,626 crore through a combination of fresh equity shares and an offer-for-sale (OFS) of 1.1 crore shares. This much-anticipated public offering opened for bids on April 28 and will conclude on April 30.
Ather Energy IPO Subscription Details
On the first day of bidding, the Ather Energy IPO saw a 16% subscription rate, with investors flocking to subscribe for 86,16,674 shares out of the 5,33,63,160 shares available. Notably, the retail investor segment dominated the subscriptions, accounting for 63%, while Non-Institutional Investors (NIIs) contributed 16%. Interestingly, the Qualified Institutional Buyers (QIBs) did not show any participation on Day 1.
- Retail Investors: 63%
- Non-Institutional Investors: 16%
- Qualified Institutional Buyers: 0%
Financial Backing and Pricing
Prior to the public offering, on April 25, Ather Energy secured ₹1,340 crore from anchor investors, bolstering its financial position. The IPO’s price band is set between ₹304 and ₹321 per share, providing potential investors with a clear range to evaluate their bids.
Grey Market Premium Insights
As of April 28, the grey market premium (GMP) for Ather Energy’s IPO stood at ₹1 per share. This indicates a positive sentiment among investors, as the shares are anticipated to list at approximately ₹322, reflecting a premium of 0.31% based on the upper price band. The GMP is a useful indicator of market enthusiasm for a new listing.
Expert Opinions on Ather Energy IPO
Experts are divided on their recommendations regarding the Ather Energy IPO. Some analysts suggest that this offering could be a long-term investment opportunity, while others highlight its potential for short-term gains. According to Bajaj Broking, the financial outlook suggests that only knowledgeable investors with surplus funds should consider a moderate investment.
Conversely, Ventura Securities advocates for participation, emphasizing the prospect of listing gains. They express concerns about subsidy reductions and capacity utilization but still see value in the offering.
- Bajaj Broking: Long-term investment only for informed investors
- Ventura Securities: Subscribe for potential listing gains
Conclusion
With Ather Energy’s IPO gaining traction, it stands as an intriguing opportunity for investors interested in the burgeoning electric vehicle market. As the bidding period progresses, stakeholders will be keenly observing the subscription trends and expert recommendations to make informed decisions. Whether for long-term holding or short-term gains, Ather Energy’s public issue is certainly one to watch.
