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The initial public offering (IPO) of Ather Energy, which opened for public bidding on April 28, was subscribed 100% on the final day of bidding on Wednesday (April 30).
The Hero MotoCorp-backed EV maker plans to garner ₹2,981 crore through a combination of fresh issue and offer for sale.
The retail portion of the IPO was subscribed 1.45 times, while the issue was subscribed 4.22 times by the company's employees. The non-institutional investors’ category was booked 34% so far on the final day of bidding. Meanwhile, the qualified institutional buyers' portion was subscribed 1.20 times.
In the unlisted market, the company's shares were trading with a GMP of ₹1 on Wednesday, indicating a premium of 0.31% over the upper end of the IPO price band of ₹321.
However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
The company is selling its shares in the range of ₹304-321 apiece and investors can apply for a minimum of 46 equity shares and its multiples thereafter.
The Tiger Global-backed company has reduced the size of its IPO, its prospectus showed. It plans to raise ₹2,981 crore by issuing new shares, compared with its earlier plan of raising ₹3,100 crore.
The IPO includes fresh equity sale of 8.18 crore shares worth ₹2,626 crore and an offer for sale (OFS) of 1.1 crore shares. The total issue size comes to about ₹2,981 crore.
Under the OFS, promoters Tarun Sanjay and Swapnil Babanla, along with other corporate shareholders, will sell part of their stakes.
Sources told CNBC-TV18 that Ather Energy is now targeting a post-money valuation of ₹12,800 crore, down from its earlier expectation of ₹14,000 crore.
Ather Energy plans to use the IPO proceeds for funding its new factory in the western state of Maharashtra, as well as for research and development, repayment of debt, marketing, and general corporate purposes.
Ahead of the issue launch, Ather Energy has secured ₹1,340 crore from anchor investors. The shares were allotted at ₹321 each.
A total of 4.18 crore equity shares were allocated to 36 anchor investors, which include names such as SBI, Abu Dhabi Investment Authority (ADIA), Invesco, Franklin Templeton, ICICI Prudential, Morgan Stanley, and Societe Generale.
Hero MotoCorp is the largest shareholder in Ather with around 40% stake. Hero maintained its stance that it will not sell its shares in the public offer.
Ather Energy is an electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. Its electric two-wheeler portfolio comprises two product lines, the Ather 450 and the Ather Rizta, with seven variants.
The Bengaluru-based company reported a narrower loss of ₹578 crore in the nine months ended December, from ₹776 crore a year ago, due to increased sales of its electric family scooter Rizta, which was launched in 2024.
Axis Capital, Hsbc Securities & Capital Markets, Jm Financial, Nomura Financial Advisory And Securities (India) are the book running lead managers of the Ather Energy IPO, while Link Intime India is the registrar.
The allotment for the Ather Energy IPO is expected to be finalised on Friday, May 2, while the company will be list on BSE, NSE with a tentative listing date fixed as May 6.
Ather Energy is the first major mainboard IPO of FY26. The compay will become the second pure-play Indian electric vehicle manufacturer to go public, following Ola Electric's IPO last year.
