The excitement surrounding electric vehicles (EVs) has made its way to Dalal Street, as Ather Energy, a leading name in India’s electric scooter market, launches its Initial Public Offering (IPO) for subscription today, April 18. If you’re considering investing, it’s crucial to understand the details of this IPO, including pricing, market trends, and expert insights that could shape your decision.
Overview of Ather Energy’s IPO: Pricing and Key Information
Ather Energy has unveiled a substantial ₹2,981 crore IPO marking the inaugural mainboard public offering for the fiscal year 2026 (FY26). The company has set the price range between ₹304 and ₹321 per share.
This offering consists of a fresh issue valued at ₹2,626 crore alongside an Offer for Sale (OFS) of 1.1 crore shares from current shareholders.
The allocation of shares is structured as follows:
- 75% allocated for Qualified Institutional Buyers (QIBs)
- 15% reserved for Non-Institutional Investors (NIIs)
- 10% earmarked for Retail Investors
Investors have until April 30 to subscribe, with shares expected to debut on both NSE and BSE on May 6.
Ather Energy IPO: Grey Market Insights
Current grey market sentiments indicate a cautious approach towards Ather Energy’s IPO. As of Monday morning, the shares were trading at a nil premium, down from a ₹40 premium observed on April 22, which raises questions about investor confidence.
Major Backers of Ather Energy’s IPO
Prior to opening the subscription to the public, Ather Energy secured ₹1,340 crore through a range of anchor investors. Notable names in this group include:
- Custody Bank of Japan
- Franklin Templeton
- Abu Dhabi Investment Authority
- Morgan Stanley Investment Management
- Eastspring Investments
- Société Générale
Broker Insights on Ather Energy IPO
Bajaj Broking: Long-term Investment Perspective
Bajaj Broking advises caution, noting that Ather Energy is still grappling with financial losses and a significant debt load of ₹1,121 crore as of December 2024. They suggest that this IPO is better suited for long-term investors who have surplus funds. “Given its current financial situation, this could be a long-term investment story, making it advisable for well-informed investors to consider moderate investments,” the report states.
Arihant Capital: Favoring Listing Gains
In contrast, Arihant Capital presents a more optimistic view, emphasizing Ather’s strong position in India’s rapidly expanding EV landscape and its first-mover advantage. With new product launches such as the Ather Rizta and the anticipated Factory 3.0, the company is making significant strides. Arihant Capital’s report encourages potential investors to “Subscribe for listing gains.”
Ventura Securities: Positive Outlook for Premium Products
Ventura Securities also recommends subscribing for potential listing gains. They highlight the company’s commitment to premium offerings, the Ather Grid charging network, and ongoing research and development. “Despite challenges like subsidy cuts and low-capacity utilization, Ather is undergoing significant capital expenditure with its Ather Factory 3.0,” they noted.
Conclusion
As Ather Energy’s IPO opens for subscription, investors are presented with various perspectives from brokerage firms. Whether you lean towards a cautious long-term investment or a more optimistic take for quick returns, understanding the nuances of this offering is essential for making an informed decision. With the EV market poised for growth, Ather Energy may be a noteworthy player to watch in the coming years.
