Ather Energy’s initial public offering (IPO) has garnered significant attention, with the subscription status reflecting varied investor interest across different categories.
Subscription Overview
As of the second day, the IPO achieved a 30% overall subscription rate. Notably, the employee reserved portion was oversubscribed at 3.23 times, and retail individual investors subscribed at 1.2 times their allotted shares. In contrast, non-institutional investors (NIIs) subscribed to only 28% of their portion, and qualified institutional buyers (QIBs) have yet to place any bids.
Detailed Subscription Breakdown
| 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 |
| 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 |
Anchor Investors and Fund Allocation
Prior to the IPO launch, Ather Energy secured Rs 1,340 crore from anchor investors, including Custody Bank of Japan, Franklin Templeton, and Abu Dhabi Investment Authority. The IPO aims to raise Rs 2,981 crore, with a price band set between Rs 304 and Rs 321 per share. The funds are earmarked for establishing a new manufacturing facility in Maharashtra (Rs 927.2 crore), research and development (Rs 750 crore), marketing initiatives (Rs 300 crore), and debt repayment (Rs 40 crore).
Financial Performance
Ather Energy reported a revenue of Rs 1,753.8 crore for FY24, a slight decrease from Rs 1,780.9 crore in FY23. The pre-tax loss widened to Rs 1,059.7 crore in FY24 from Rs 864.5 crore the previous year. However, in the April–December 2024 period, operating revenue rose by 28% year-on-year to Rs 1,579 crore, and net losses narrowed by 25% to Rs 578 crore.
Market Context and Investor Sentiment
The electric vehicle (EV) market in India is experiencing rapid growth, with projections indicating a rise in electric two-wheeler penetration from 5.1% in FY24 to 35-40% by FY31. Ather Energy’s IPO is a significant event in this landscape, following Ola Electric’s successful listing in 2024. The varied subscription rates across investor categories may reflect differing risk appetites and perceptions of the company’s growth potential.
Conclusion
Ather Energy’s IPO presents a pivotal moment for the company and the broader Indian EV sector. The strong response from retail investors and employees underscores confidence in the company’s prospects, while the cautious approach from institutional investors suggests a wait-and-see attitude. As the subscription period concludes, the final figures will offer deeper insights into market sentiment and the future trajectory of Ather Energy.
