Ather Energy IPO GMP Dips Ahead Of Launch On April 28; Check Latest Grey Market Premium

The initial public offering (IPO) of Ather Energy Ltd. is set to open for subscription on Monday, April 28. However, investor enthusiasm appears to be waning in the unofficial grey market even before the IPO goes live.

The grey market premium (GMP) for the Ather Energy IPO has seen a dip, signalling subdued demand among investors.

As of 1:57 pm on April 24, the GMP stood at Rs 6, according to Investorgain. With the IPO’s price band set at Rs 304 to Rs 321 per share, this translates to an estimated listing price of Rs 327 at the upper price band, which is only 1.87% above the upper price band.

In contrast, a day earlier, on April 23, at around 9 am, the GMP stood at Rs 17. At that point, the estimated listing price was Rs 338, reflecting a potential gain of 5.29% on market debut. At end of the day, the GMP slid to Rs 10 reflecting a potential gain of 3.12%.

The drop in GMP suggests that investors have probably turned cautious ahead of the IPO launch.

Note: GMP is not an official source of data and is based on speculation.

Ather Energy, an electric vehicle manufacturer based in Bengaluru, seeks to raise Rs 2,980.76 crore through its initial public offering. The mainboard issue comprises a fresh issuance of 8.18 crore shares, worth Rs 2,626 crore, alongside an offer-for-sale portion of 1.11 crore shares, amounting to Rs 354.76 crore.

The Qualified Institutional Buyers (QIBs) will be allocated at least 75% of the net offer, while retail investors will receive up to 10%. Non-Institutional Investors (NIIs), including High Net-Worth Individuals (HNIs), are eligible to receive up to 15% of the net issue.

Investors can place bids for a single lot size of 46 shares and in multiples thereof. Retail investors need to apply for a single lot size with a minimum investment of Rs 14,766 at the upper price band.  

The IPO’s subscription window will remain open until April 30. The tentative allotment date is May 2, with refunds and the credit of shares to Demat accounts scheduled for May 5. The listing is expected to take place on both the BSE and NSE on May 6.

Ather Energy IPO is being managed by leading financial institutions, including JM Financial, HSBC Securities, Axis Capital, and Nomura India, who are acting as the book-running lead managers. Link Intime India is the official registrar for the offering.

Ather Energy, founded in 2013, launched its first electric two-wheeler in 2018, after spending nearly five years in research and product development. In 2024, Ather expanded its product lineup with the introduction of the Rizta, a family-friendly scooter.

Ather Energy has outlined several uses for the funds it expects to raise through its IPO. A portion will be invested in establishing a new manufacturing facility for electric two-wheelers in Maharashtra. The company also plans to use part of the funds to settle existing loans, improve its ongoing research and development initiatives and boost its marketing efforts. A portion of the proceeds will also be allocated for general corporate expenses.

In the nine months ending Dec. 31, 2024, Ather Energy generated Rs 1,617.4 crore in revenue. For the full year FY24, it reported a revenue of Rs 1,789.1 crore, slightly down from Rs 1,801.8 crore in FY23.

The company remained in the red, with a net loss of Rs 577.9 crore during the first nine months of FY25. The EV company’s net loss in FY24 expanded to Rs 1,059.7 crore against Rs 864.5 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.