Ather IPO Sees 28% Subscription on Day 2 as Investor Interest Remains Tepid

Ather IPO: The EV-firm witnessed tepid investor interest on Day 2 as the public offering was subscribed 28% on Tuesday. The Qualified Institutional Buyers (QIBs) segment saw negligible interest. Non-Institutional Investors (NIIs) subscribed 0.27 times whereas Retail Individual Investors (RIIs) showed a stronger response, subscribing 1.11 times. The employee reserved category was the most subscribed, with a rate of 3.18 times.

Ather is the first mainline IPO of FY26, planning to raise Rs 2,981 crore. The price band for the public offering has been set between Rs 304 and Rs 321. Wednesday will be the last day for investors to place their bids, with the expected listing date scheduled for May 6 on the stock exchanges.

"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 Investments said in report.

Ather IPO Latest GMP

The subdued interest by investors was visible in the grey market as well. At 5:35 pm, the shares of Ather Energy were trading at Rs 322, commanding a grey market premium (GMP) of Rs 1. "Despite current profitability challenges and valuation concerns, we recommend a "Subscribe" rating for high-risk investors with a long-term outlook," the brokerage firm said.

The grey market signals the initial price level of shares before the company is actually listed on the bourses (NSE and BSE).

SBI Securities has advised investors to "avoid" Ather Energy’s IPO, citing rising competition in the electric two-wheeler segment. The brokerage noted that Ather is yet to turn profitable at both the EBITDA and PAT levels. Plus, auto giant Honda is also planning to launch its electric scooter under the popular 'Active' brand.