Ather Energy IPO Opens On April 28: Latest GMP, Price Bands, Allotment, Listing Date; Should Investors Bid?

Ather Energy IPO: The Rs 2,626 crore worth initial public offering (IPO) of Ather Energy is going to open on April 28 on the primary market of BSE and NSE. Ahead of the public offer, the Hero MotoCorp-backed electric two-wheeler maker raised Rs 1,340 crore from anchor investors. The IPO will be available for subscription till April 30. Is it worth subscribing to this IPO?

Ather Energy IPO Subscription Details:

The IPO will open on April 28 and close on April 30th. It is a 100% book-building, with price bands fixed at Rs 304 to Rs 321 per equity share, with a face value of Re 1 each. The bid lot size is 46 Equity Shares and in multiples thereof.

The IPO comprises a fresh issue worth Rs 2,620 crore and an offer for sale (OFS) of up to 11,051,746 equity shares. Of the total, 75% of the issue will be reserved for qualified institutional buyers (QIBs), while 15% of the net offer is allocated to non-institutional investors (NIIs) or high-net-worth investors (HNIs) for bidding. The rest 10% will be allocated to retail individual investors (RIIs).

The maximum subscription amount for investment for retail investors is set at Rs 2 lakh. While the maximum limit for eligible employees is set at Rs 5 lakh. QIBs can bid for a maximum of 5,32,63,124 equity shares in multiple of 46 Equity Shares, while NIIs can bid for a maximum of 2,43,35,794 equity shares in a multiple of 46 Equity Shares.

From the total fresh issue size, about Rs 927.2 crore of the offer will be used for capital expenditure to establish an E2W factory in Maharashtra, India. Ather plans to use Rs 40 crore proceeds for repayment pre-payment, in full or part, of certain borrowings; while Rs 750 crore will be used for investment in research and development, and Rs 300 crore will utilized for expenditure towards marketing initiatives. The rest sum will be used for general corporate purposes.

Ather will not use the proceeds from OFS since selling shareholders will be eligible for it. The selling shareholders are Tarun Sanjay Mehta, Swapnil Babanlal Jain, Caladium Investment, National Investment and Infrastructure Fund II, Internet Fund III, IITM Incubation Cell, IITMS Rural Technology and Business Incubator, and Amit Bhatia.

Book-running lead managers of the IPO are Axis Capital, HSBC Securities and Capital Markets, JM Financial, Nomura Financial Advisory and
Securities (India).

Ather Energy IPO GMP Today:

As per Investor Grain, Ather Energy IPO's last GMP is Rs 3, last updated Apr 27th 2025 07:59 AM. With a price band of 321.00, Ather Energy IPO's estimated listing price is Rs 324 (cap price + today's GMP). The expected percentage gain/loss per share is 0.93%.

Ather Energy IPO Allotment Date:

After the IPO, the tentative allotment date for Ather Energy is likely to be on Friday, May 2, 2025. This will be followed by the initiation of refunds and credit of shares to eligible investors on May 5.

Ather Energy IPO Listing Date:

Ather is expected to list on May 6, 2025. The IPO will debut on both BSE and NSE.

Should You Bid For Ather Energy IPO?

Here are key reasons to invest in the IPO as per My Investment Ideas:

- Entry into the Fast-Growing EV Sector: India's EV market is projected to grow rapidly with government support and rising fuel prices.

- Strong Brand Recognition: Ather has carved a niche in the premium electric scooter market.

- Tech-Driven Company: Offers software-defined products with proprietary features.

- Expanding Market Presence: Presence in India and South Asia indicates future international potential.

- Government Incentives: The EV sector benefits from FAME II and state-level subsidies.

- Robust Infrastructure: Ather Grid and in-house battery production provide an edge.

- Backing from Hero MotoCorp: A major stakeholder lends credibility and potential synergies.

The Ather Energy IPO seems to be a lucrative investment opportunity for investors as the company has an exposure to a dominant industry and strategic plans to utilise the funds from IPO receipts. However, it is advisable to consider crucial factors like negative P/E Ratio and EPS. Staying aware of such relevant factors can help investors make a wise decision for Ather Energy IPO, which will list on 6th May 2025 on NSE & BSE, as per Univest report.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.