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Ather Energy CEO Tarun Mehta
The initial public offering (IPO) of Ather Energy saw an overall subscription of 30% on the second day, led by retail investors and employees, while non-institutional investors showed limited interest, and qualified institutional buyers remained absent.
The employee reserved portion was subscribed 3.23 times, while the retail individual investors' portion was subscribed 1.2 times. Non-institutional investors subscribed to just 28% of their allotted shares.
| Category | Subscription (times) | Shares Offered | Shares bid for |
| QIB | 0.00 | 2,78,30,383 | 7,636 |
| NII | 0.28 | 1,39,15,192 | 39,15,106 |
| bNII (bids above Rs 10L) | 0.30 | 92,76,795 | 28,17,546 |
| sNII (bids below Rs 10L) | 0.24 | 46,38,397 | 10,97,560 |
| Retail | 1.20 | 92,76,795 | 1,11,26,572 |
| Employees | 3.23 | 1,00,000 | 3,22,920 |
| Total | 0.30 | 5,11,22,370 | 1,53,72,234 |
Total Application: 1,67,515
The Bengaluru-based electric two-wheeler maker 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.
Anchor round
Ather Energy raised Rs 1,340 crore from a roster of anchor investors, including prominent global and domestic names such as Custody Bank of Japan, Franklin Templeton, Abu Dhabi Investment Authority, Eastspring Investments, Morgan Stanley Investment Management, and Societe Generale.
Domestic mutual funds like PSBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF, ITI MF, and Union MF also participated in the anchor round.
Fund utilisation
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.
Financial performance
Ather Energy’s financial performance has seen some improvement, though the company remains loss-making. It reported revenue of Rs 1,753.8 crore for FY24, slightly down from Rs 1,780.9 crore in FY23. Its pre-tax loss widened to Rs 1,059.7 crore in FY24 from Rs 864.5 crore a year earlier.
Ather's most recent financials show improvement: in the April–December 2024 period, operating revenue rose 28% year-on-year to Rs 1,579 crore and net losses narrowed by 25% to Rs 578 crore.
The IPO remains open for subscription until April 30.