Ather Energy IPO 2025: Comprehensive Guide for Investors
25 April 2025 · Sachin Gadekar
A comprehensive guide to Ather Energy's IPO, covering key dates, pricing, GMP, and investment considerations for 2025.
Introduction To Ather Energy IPO GMP
Ather Energy IPO Day 2 Update (April 29): Retail Investors Drive Demand Amid Tepid Overall Response; GMP Remains Muted
Ather Energy's ₹2,981 crore initial public offering (IPO) entered its second day on April 29, 2025, with retail investors leading the charge. By 2:30 PM IST, the overall subscription stood at 24%, with retail investors fully subscribing to their allotted quota, achieving a 1.01x subscription rate. Non-Institutional Investors (NIIs) subscribed to 19% of their portion, while Qualified Institutional Buyers (QIBs) showed minimal interest, subscribing to just 0.002% of their reserved shares.
Grey Market Premium (GMP) Trends
The Grey Market Premium (GMP) for Ather Energy's shares has seen a decline, currently hovering around ₹1 to ₹1.50 above the upper end of the issue price band of ₹321. This suggests limited listing gains, reflecting cautious investor sentiment.
IPO Details
Issue Size: ₹2,981 crore, comprising a fresh issue of ₹2,626 crore and an offer-for-sale (OFS) of ₹355 crore.
Price Band: ₹304–₹321 per share.
Lot Size: 46 shares; minimum investment of ₹14,766 at the upper price band.
Subscription Period: April 28 to April 30, 2025.
Listing Date: Tentatively scheduled for May 6, 2025, on NSE and BSE.
Investor Considerations
While retail investors have shown strong interest, the overall subdued response and declining GMP indicate cautious market sentiment. Potential investors should weigh the company's growth prospects against current market dynamics before making investment decisions.
IPO Overview
| Details | Information |
|---|---|
| IPO Open Date | April 28, 2025 |
| IPO Close Date | April 30, 2025 |
| Listing Date | May 6, 2025 (Tentative) |
| Issue Price Band | ₹304 to ₹321 |
| Lot Size | 46 Shares |
| Minimum Investment (Retail) | ₹14,766 |
| Issue Size | ₹2,980.76 Cr |
| Fresh Issue | ₹2,626.00 Cr |
| Offer for Sale | ₹354.76 Cr |
| Face Value | ₹1 per share |
| Listing At | BSE, NSE |
Lot Size & Investment Table
| Investor Type | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 46 | ₹14,766 |
| Retail (Max) | 13 | 598 | ₹1,91,958 |
| S-HNI (Min) | 14 | 644 | ₹2,06,724 |
| S-HNI (Max) | 67 | 3,082 | ₹9,89,322 |
| B-HNI (Min) | 68 | 3,128 | ₹10,04,088 |
Ather Financials (₹ in Crores)
| Period | Assets | Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| Dec 31, 2024 | 2,172 | 1,617.4 | -577.9 | 108 |
| Mar 31, 2024 | 1,913.5 | 1,789.1 | -1,059.7 | 545.9 |
| Mar 31, 2023 | 1,976.8 | 1,801.8 | -864.5 | 613.7 |
| Mar 31, 2022 | 818.6 | 413.8 | -344.1 | 224.9 |
GMP and Company Background
Grey Market Premium (GMP)
As of the latest reports, the Grey Market Premium (GMP) for Ather Energy's IPO is fluctuating, reflecting investor sentiment and market conditions. Investors should monitor GMP trends as they can provide insights into the potential listing performance.
Shareholder Quota
Initially, there was an expectation of a shareholder quota for existing investors; however, the final Red Herring Prospectus (RHP) does not include this provision. This change has raised concerns among some investors who anticipated preferential allotment.
Company Background
Founded in 2013, Ather Energy Limited is an Indian EV company specializing in the design, development, and manufacturing of electric scooters, battery packs, and charging infrastructure. The company operates a vertically integrated model, emphasizing in-house research and development.
Product Portfolio
Ather 450 Series: High-performance electric scooters with advanced features.
Ather Rizta: A family-oriented scooter aimed at broadening the customer base.
Ather Grid: A public fast-charging network for two-wheelers.
Atherstack: A proprietary software platform offering connected features.
Operational Footprint
As of December 31, 2024, Ather Energy has:
265 experience centers and 233 service centers across India.
Presence in Nepal and Sri Lanka with experience and service centers.
A manufacturing facility in Hosur, Tamil Nadu, with an annual capacity of 420,000 vehicles and 379,800 battery packs.
Investment Considerations
Strengths:
Innovative Technology: Strong focus on R&D leading to advanced features in products.
Integrated Operations: Control over the entire value chain enhances efficiency.
Market Presence: Established brand with a growing network of experience centers.
Risks:
Profitability: The company is currently loss-making, with profitability dependent on future sales growth.
Market Competition: Faces competition from established players like Ola Electric, TVS, and Bajaj.
Regulatory Environment: Changes in EV policies and subsidies could impact operations.
Conclusion
Ather Energy's IPO presents an opportunity to invest in India's burgeoning EV sector. While the company shows promise with its innovative products and expanding market presence, investors should weigh the potential risks, including current financial losses and market competition. As always, thorough due diligence and consultation with financial advisors are recommended before making investment decisions.
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