Ather Energy IPO subscribed 16% on Day 1

Ather Energy’s IPO price band is between ₹304-321

Two wheeler EV maker Ather Energy’s initial public offering (IPO) saw an overall subscription of 16 per cent on its first day. The subscription was dominated by employee reserved and retail investor portions while there was subdued interest from Non-Institutional Investors (NIIs).

The employee reserved portion witnessed a subscription rate of 1.78 times. Retail individual investors subscribed to 63 per cent of the shares allotted to them, while the non-institutional investor (NII) category saw 16 per cent of its allocated shares subscribed. There were no bids from the Qualified Institutional Buyers.

Ather Energy’s IPO price band is ₹304-321.

The Bengaluru-based company is expecting to raise ₹2,981 crore from the offering and has already mobilised ₹1,340 crore from anchor investors including Franklin Offshore, Morgan Stanley, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF among others. Of the total, ₹927.2 crore will be allocated towards setting up a new electric two-wheeler manufacturing facility in Maharashtra. An additional ₹750 crore is earmarked for investments in research and development, while ₹300 crore will be used for marketing initiatives.

Ather Energy will be the second electric two-wheeler company looking to go public after Ola Electric Mobility floated its ₹6,145-crore IPO in August last year. Ola Electric’s IPO had a fresh issue of up to ₹5,500 crore and an OFS of up to 8.5 crore equity shares.

The company’s revenue grew by 28 per cent on year to ₹1,578.9 crore in the 9-month period of FY25 while net loss reduced to ₹577.9 crore. Ather reported revenue from operations of ₹1,753.8 crore in FY24, while the loss before taxes of ₹1,059.7 crore.

The company’s adjusted gross margin improved sharply from 9 per cent in the six months ended December 31, 2023, to 19 per cent in the same period in 2024. Simultaneously, Ather narrowed its EBITDA loss margin to 23 per cent , compared to 34 per cent in the previous year.

The IPO will remain open for two more days.

Published on April 28, 2025