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Ather Energy co-founders Swapnil Jain and Tarun Mehta
After two quiet days, when investors' interest was not much and QIBs stayed away, Ather Energy’s initial public offering came roaring back to life on its final day. The Bengaluru-based electric scooter maker's Rs 2,981 crore IPO was fully subscribed by the end of Day 3, with a dramatic uptick in demand led by qualified institutional buyers (QIBs).
The public issue, which had reached just 30% subscription by the end of Day 2, saw its fortunes reversed on the final day as large bids from QIBs pushed the overall subscription to 1.5 times.
QIBs subscribed to 1.76 times their allotted quota, while the retail investor portion saw 1.89 times subscription. Non-institutional investors (NIIs), however, remained cautious, subscribing to just 69% of their shares. The employee reserved portion witnessed strong interest, reaching 5.43 times subscription.
| Category | Subscription (times) | Shares Offered | Shares bid for |
| QIB | 1.76 | 2,78,30,383 | 4,90,60,472 |
| NII | 0.69 | 1,39,15,192 | 96,25,914 |
| bNII (bids above Rs 10L) | 0.74 | 92,76,795 | 68,41,626 |
| sNII (bids below Rs 10L) | 0.60 | 46,38,397 | 27,84,288 |
| Retail | 1.89 | 92,76,795 | 1,75,20,158 |
| Employee | 5.43 | 1,00,000 | 5,42,524 |
| Total | 1.50 | 5,11,22,370 | 7,67,49,068 |
Total Application: 2,73,370
In total, Ather received bids for 7.67 crore shares against the 5.11 crore shares on offer. The turnaround is massive considering the IPO's sluggish performance on Day 2, when it was subscribed to only 30%. Back then, the subscription was propped mainly up by retail and employee participation. QIBs had submitted bids for only 7,636 shares against the 2.78 crore shares allocated to them. NIIs had subscribed to just 28% of their quota.
The last-day momentum reflects renewed confidence in India's EV narrative, although with some concerns raised by several brokerage firms.
Brokerage firms remained wary of Ather's valuation and broader industry risks. Deven Choksey Research, for instance, noted that the IPO was being offered at an EV-to-sales multiple of 6x—levels they believe are overvalued. The firm assigned an ‘Avoid’ rating, suggesting the stock might offer better value once listed.
Concerns also linger over Ather's supply chain dependencies. The EV maker, in which Hero MotoCorp is the largest shareholder, relies on imported components, including parts from China. This leaves it vulnerable to regulatory shifts, geopolitical tensions, and pricing fluctuations in critical materials like lithium-ion cells. Analysts warn that any disruption in the supply chain could have a severe impact on operations.
The Tarun Mehta-led company has set a price band of Rs 304 to Rs 321 per share for the IPO, aiming to raise Rs 2,981 crore through a combination of a Rs 2,626-crore fresh issue and an offer for sale of 1.1 crore equity shares worth Rs 354.75 crore.
The funds raised through the IPO will be used for multiple initiatives. About Rs 927.2 crore is allocated for setting up a new electric two-wheeler manufacturing facility in Maharashtra, Rs 750 crore will support research and development, Rs 300 crore is earmarked for marketing, and Rs 40 crore will go toward debt repayment.
The allotment for the EV maker's IPO is expected to be finalised on May 2, 2025, with the listing scheduled for May 6, 2025.