/indianstartupnews/media/agency_attachments/2025/02/08/2025-02-08t102401502z-new-isn-logo-red.png){kind=logo}
Follow Us/indianstartupnews/media/media_files/2025/04/26/qIIoeStLPjYDUGkDS0Uk.jpg)
Ather Energy co-founders Swapnil Jain and Tarun Mehta
The initial public offering (IPO) of Ather Energy saw an overall subscription of 17% on the first day, led by retail investors and employees, even as non-institutional investors showed limited interest and qualified institutional buyers stayed away.
The employee reserved portion was subscribed 1.84 times, while the retail individual investors’ portion was subscribed 69%. Non-institutional investors subscribed to just 17% of their allotted shares. (as of 6:54:41 PM)
| Category | Subscription (times) | Shares Offered | Shares bid for |
| QIB | 0 | 2,78,30,383 | 5,060 |
| NII | 0.17 | 1,39,15,192 | 23,22,862 |
| bNII (bids above ₹10L) | 0.19 | 92,76,795 | 17,61,110 |
| sNII (bids below ₹10L) | 0.12 | 46,38,397 | 5,61,752 |
| Retail | 0.69 | 92,76,795 | 63,98,692 |
| Employees | 1.84 | 1,00,000 | 1,84,092 |
| Total | 0.17 | 5,11,22,370 | 89,10,706 |
Total Application: 1,06,177
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.
Despite strong anchor participation, the grey market premium (GMP) for Ather’s shares slipped significantly. Early in the IPO announcement, the GMP was around Rs 17, but it dropped to nearly Rs 1 by the time subscriptions opened, indicating muted enthusiasm among investors.
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.