Ather IPO Fully Subscribed on Day 3: Check Latest GMP

Ather IPO was fully subscribed on Day 3 after witnessing a tepid response from investors during the initial days. The Rs 2,981 crore public issue saw strong investor interest on Wednesday. The public offering was subscribed 1.02 times, with bids coming in for 5.42 crore shares against 5.33 crore on offer, as per NSE data.

Meanwhile, the electric two-wheeler maker had already secured Rs 1,340 crore from anchor investors before the issue was opened. The IPO's book-running lead managers include Axis Capital, HSBC Securities, JM Financials and Nomura. However, despite getting fully subscribed, the shares of the EV maker are witnessing subdued interest in the grey market.

As of 2:50 pm, Ather shares were trading at a grey market premium (GMP) of Rs 1, commanding a mere premium of 0.31%.

GMP refers to the price level at which the shares of the company trade before officially getting listed on the bourses. It indicates the initial mood of investors in the grey market. For now, the sentiment remains largely muted.

The IPO comprises a fresh issue of Rs 2,626 crore and an offer-for-sale of 1.1 crore equity shares by existing stakeholders, including the National Investment and Infrastructure Fund II.

Analysts' view

Analysts on Dalal Street held mixed views on Ather's IPO. While Geojit gave it a ‘BUY’ rating, pointing to its long-term growth potential, Deven Choksey Research advised investors to avoid the same, suggesting the stock might be available later in the secondary market at more appealing valuations.

Bajaj Broking also maintained a cautious stance. “While Ather Energy is making strides in expanding its manufacturing capacity, its financial health remains weak,” the brokerage house said in a report.

“The company’s negative earnings per share (EPS) and return on net worth (RoNW) reflect ongoing financial struggles. Given its accumulated losses and high borrowings, this IPO is a long-term investment story.” the report read.

"At the upper price band of Rs 321, Ather’s EV/Sales ratio of 7.1x (FY24) appears expensive. However, as a pioneer in the E2W segment, the company is in a strong growth phase with robust R&D and new technological platforms," Geojit Broking said while maintaining a cautious outlook owing to valuation concerns.