Ather Energy Makes Its Mark on the Stock Market
Ather Energy, an innovative player in the electric vehicle (EV) sector, is officially entering the Indian stock market today. The initial public offering (IPO) for Ather Energy Ltd experienced moderate interest from investors. The company’s shares will be listed today, May 6, 2025, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), following a subscription period that ran from April 28 to April 30.
IPO Allotment and Listing Details
The allotment process for Ather Energy’s IPO was completed on May 2, setting the stage for today’s trading debut. A notice from the BSE confirmed that Ather Energy’s equity shares will join the ‘B’ Group of Securities, allowing them to be traded starting at 10:00 AM during the Special Pre-open Session.
- IPO Subscription Dates: April 28 – April 30
- Allotment Finalized: May 2
- Listing Date: May 6, 2025
- Trading Start Time: 10:00 AM
Grey Market Premium Insights
Ahead of this much-anticipated listing, investors are closely monitoring the grey market premium (GMP), which helps predict how the stock will perform on its first day. Today’s figure indicates a modest GMP of ₹14, suggesting that Ather Energy shares are trading at ₹335 in the grey market, reflecting a 4.36% premium over the IPO price of ₹321.
Analysts predict that Ather Energy’s shares may list with a modest increase of 3-5%, based on current GMP trends. Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, mentioned, "The last-minute surge in subscriptions, particularly from Qualified Institutional Buyers (QIBs), hints at some support for the IPO amid concerns of under-subscription. However, this raises questions about the overall demand quality."
Market Expectations
Tapse further elaborated that the flat listing of Ather Energy’s shares seems warranted, especially when compared to peer companies like OLA Electric, which have struggled post-IPO. The electric two-wheeler market is characterized by intense competition and high capital demands, leading to skepticism among new investors about achieving sustainable profitability.
- Expected Listing Performance: Moderate to Flat
- Analyst Recommendation: "HOLD" for high-risk investors
Gaurav Goel, Founder & Director at Fynocrat Technologies, echoed these sentiments, noting the mixed response to Ather Energy’s IPO, particularly among non-institutional investors. He remarked, “The grey market currently shows a modest premium of around ₹7 per share, suggesting limited upside potential on the listing day.”
Ather Energy IPO Highlights
The Ather Energy IPO was valued at ₹2,981.06 crore, consisting of a fresh issue of 8.18 crore equity shares worth ₹2,626.30 crore and an offer for sale (OFS) of 1.11 crore shares totaling ₹354.76 crore. The IPO was priced at ₹321 per share and received a total subscription of 1.43 times, with bids for 7.65 crore shares against an offer of 5.33 crore shares.
- Total IPO Value: ₹2,981.06 crore
- Fresh Issue: 8.18 crore shares
- OFS: 1.11 crore shares
- Subscription Ratio: 1.43 times
With Ather Energy’s entry into the stock market, all eyes are on its performance as it navigates the challenges of a competitive industry. Investors are encouraged to consider their risk tolerance as they engage with this new listing. For more information on upcoming IPOs, stay tuned!
