Ather Energy, a Bengaluru-based electric two-wheeler manufacturer, made its debut on the Indian stock exchanges on May 6, 2025, with its shares listing at a modest premium over the issue price. The company's initial public offering (IPO) and subsequent plans have garnered attention in the electric vehicle (EV) sector.

IPO Listing Details

• NSE Listing: Shares opened at ₹328, a 2.18% premium over the issue price of ₹321.

• BSE Listing: Shares debuted at ₹326.05, reflecting a 1.57% premium.

This performance aligns with the grey market premium (GMP) observed prior to listing, which indicated a modest 2% to 4% premium, suggesting tempered investor expectations.

IPO Subscription Overview

The ₹2,981 crore IPO comprised a fresh issue of ₹2,626 crore and an offer for sale (OFS) of ₹355 crore. The subscription details are as follows:

• Qualified Institutional Buyers (QIBs): Subscribed 1.70 times.

• Retail Investors: Subscribed 1.78 times.

• Non-Institutional Investors (NIIs): Subscribed 0.66 times.

• Employees: Subscribed 5.43 times.

The overall subscription stood at 1.43 times, indicating a moderate response from the market.

Use of IPO Proceeds

Ather Energy has outlined a strategic allocation of the IPO proceeds:

• New Manufacturing Plant: ₹927.2 crore to establish a facility in Maharashtra.

• Research and Development: ₹750 crore to enhance product innovation.

• Debt Repayment: ₹40 crore to reduce financial liabilities.

• Marketing Initiatives: ₹300 crore to expand market reach.

These investments aim to bolster Ather's position in the competitive EV market and drive future growth.

Company Background and Product Portfolio

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy has positioned itself as a tech-forward EV manufacturer. Its product lineup includes:

• Ather 450: A performance-oriented electric scooter.

• Ather Rizta: A family scooter launched in 2024, contributing to a reduction in net loss to ₹578 crore in the nine months ended December 2024.

The company also operates Ather Grid, India's largest two-wheeler fast-charging network, with over 2,600 chargers across more than 300 cities.

Shareholding and Valuation Adjustments

Prior to the IPO, Ather Energy reduced its valuation target by 44%, aiming for a post-money valuation of ₹12,800 crore, down from ₹14,000 crore. Major shareholder Hero MotoCorp, holding around 40%, did not participate in the OFS, signaling long-term confidence in Ather's prospects.

Market Context and Analyst Perspectives

The IPO landscape in India has been cautious, influenced by global economic uncertainties. Analysts have noted that Ather's flat listing is justified given the aggressive pricing and the competitive nature of the EV sector. The company's focus on innovation and infrastructure development is seen as a positive step towards achieving profitability.

Conclusion

Ather Energy's entry into the public market marks a significant milestone in its journey. While the initial listing was modest, the company's strategic investments in manufacturing, R&D, and market expansion position it well for future growth in the evolving electric vehicle landscape.

The Current active IPO are Srigee DLM, Manoj Jewellers, Wagons Learning, Kenrik Industries.

The Closed IPOs are  Arunaya Organic, Ather Energy, Iware Supplychain Services.

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