Mumbai: Ather Energy is set to list on Indian stock exchanges on Tuesday, but signs from the grey market suggest a quiet debut for the EV firm.
The Bengaluru-based electric two-wheeler maker is seeing only a mild premium ahead of its listing, pointing to limited early enthusiasm from investors.
As of Monday, the grey market premium (GMP) for Ather shares stood at just Rs 7 above the IPO’s upper price band of Rs 321, indicating a potential upside of only around 2.18 per cent, according to InvestorGain.com.
This marks a noticeable drop from earlier expectations, as the GMP has steadily declined in the run-up to the listing.
The Rs 2,981 crore IPO received a relatively lukewarm response from investors across all categories. Overall, it was subscribed 1.43 times.
Retail investors subscribed 1.78 times, qualified institutional buyers (QIBs) 1.70 times, while non-institutional investors (NIIs) subscribed only 0.66 times.
However, the employee quota saw robust participation, with a subscription of 5.43 times.
Backed by global investors like Tiger Global, Ather Energy’s IPO opened for subscription between April 28 and April 30.
The allotment of shares was finalised on May 3, and shares were credited to investors’ accounts on Monday.
Refunds have also been issued for those who didn’t receive shares. The funds raised through the IPO will support Ather’s expansion efforts.
Approximately Rs 927.2 crore will go toward establishing a new EV manufacturing plant in Maharashtra.
The company is also investing Rs 50 crore in research and development, Rs 300 crore in marketing and brand building, and Rs 40 crore in debt repayment.
Meanwhile, despite being one of the early entrants in India’s EV sector, Ather has remained unprofitable since its inception in 2013 by Tarun Mehta and Swapnil Jain.
According to its red herring prospectus (RHP), the company has incurred losses every financial year, with no clear timeline for achieving cost efficiency or profitability.
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