Ather Energy IPO Day 2 Highlights (April 28): Check Day 2 subscription status, GMP and more

• Qualified Institutional Buyers (QIBs) -- 0.00
• Non Institutional Investors(NIIS) -- 0.27 times
• Retail Individual Investors (RIIs) -- 1.11 times
• Employee Reserved -- 3.18 times
• Total -- 0.28 times

• Qualified Institutional Buyers (QIBs) -- 0.00
• Non Institutional Investors(NIIS) -- 0.26
• Retail Individual Investors (RIIs) -- 1.08
• Employee Reserved -- 3.05
• Total -- 0.27

India’s journey toward an electric future has taken two distinct paths. Ola Electric surged ahead with a flashy IPO last year, grabbing investor attention with its aggressive push. Meanwhile, Ather Energy—celebrated for its sleek designs and strong urban appeal—is taking a more deliberate approach, with its IPO seeing a slower, more calculated response. With Day 2 of Ather’s public issue underway, the contrast between the two EV players underscores not only their differing strategies but also shifting investor priorities in the country’s fast-growing EV market.

After making a name for itself fixing homes, Urban Company is now looking at Dalal Street. The home services platform has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a Rs 1,900-crore IPO, combining a fresh fundraise with a handsome payout for early believers. (Read More)

Hero Motocorp is set to relinquish its special rights in Ather Energy following the latter’s upcoming initial public offering (IPO). According to Ather’s IPO prospectus, Hero currently holds several preferential rights, including the ability to appoint a board observer and access to sensitive company information, such as minutes of board meetings. (Read More)

• Qualified Institutional Buyers (QIBs) -- 0.00
• Non Institutional Investors(NIIS) -- 0.18
• Retail Individual Investors (RIIs) -- 0.91
• Employee Reserved -- 2.61
• Total -- 0.22

IPO-bound Ather Energy will not chase 'discount-driven volumes' and plans to scale up domestic lithium-ion cell production in India to secure supply chains. CEO and co-founder Tarun Mehta told Moneycontrol during an exclusive interaction on April 29 that Ather's proposed capacity expansion is expected to ramp up production to 5 lakh units annually, as it aims to increase footprint beyond southern regions. (Read More)

Ather Energy’s IPO is supported by several major players in the financial sector. The book-running lead managers for the issue include Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India). Managing the backend operations, Link Intime has been appointed as the IPO’s registrar.

India's electric two-wheeler market is projected to expand at a compound annual growth rate (CAGR) of 41% to 44%, with electric two-wheeler penetration expected to rise to 35-40% by FY31, up from 5.1% in FY24.

Ather Energy launched its first product, the Ather 450, in June 2018. It was the first in India’s electric two-wheeler (E2W) segment to offer connected features such as a 3G SIM card, touchscreen dashboard, aluminum chassis, and cloud integration.

Ather Energy stands out for its innovation-driven approach, backed by robust in-house R&D and a vertically integrated product design strategy. Its software-defined ecosystem enhances customer engagement and supports healthy margins. Additionally, the company’s scalable technology platform allows for rapid and efficient product rollouts.

The three-day subscription period for the Ather Energy IPO is scheduled to close on April 30. The basis of share allotment is likely to be finalized by May 2, with the shares expected to list on the NSE and BSE on May 6.

• Ather Energy Limited IPO opened on Monday.
  Employee segment was fully subscribed within a few hours.
  The company raised Rs 1,340 crore from 36 anchor investors at the upper end of the price band.
  Prominent Foreign Institutional Investors (FIIs):
• Custody Bank of Japan
  Franklin Templeton
  Abu Dhabi Investment Authority (ADIA)
  Eastspring Investments
  Morgan Stanley Investment Management (MSIM)
  Prominent Domestic Institutional Investors:
• SBI Mutual Fund
  Aditya Birla Sun Life Mutual Fund
  ICICI Prudential Mutual Fund
  Invesco Mutual Fund
  ITI Mutual Fund
  Union Mutual Fund
  Tata Investment Corporation, among others.
  Subscription status as of 5:00 PM:
• QIB (Qualified Institutional Buyers) – 0.00x
  NII (Non-Institutional Investors) – 0.16x
  Retail Investors – 0.63x
  Employee Reservation – 1.78x
  Total Subscription – 0.16x

Arihant Capital pointed out Ather’s strong position in India’s rapidly expanding EV market and its early mover advantage. The firm noted that with new product launches like the Ather Rizta and the upcoming Factory 3.0, the company is quickly scaling its operations. In its report, Arihant Capital stated, “We recommend a ‘Subscribe for listing gain’ rating for this issue.”

The book-building issue includes 8.18 crore fresh shares along with 1.11 crore shares offered by promoters. The IPO allotment is likely to be finalised on May 2. According to the tentative timeline, Ather Energy’s shares are expected to debut on the D-Street (NSE and BSE) on May 6. Axis Capital, HSBC Securities & Capital Markets, JM Financial, and Nomura Financial Advisory and Securities (India) are acting as the lead book-running managers, while Link Intime India is serving as the registrar for the issue.

Deven Choksey Research has noted that Ather’s IPO is priced at an EV/Sales valuation of 6x, which they believe "appears overvalued." They have assigned an "Avoid" rating to the IPO, suggesting that investors may find a more attractive entry point in the secondary market.

Hello and welcome to Moneycontrol. Today, in the top business news, we are taking a stock of Ather Energy IPO. The public issue was launched for subscription on Monday, April 28, aiming to raise nearly Rs 2,981 crore. The IPO comprises 8.18 crore new equity shares and an offer for sale (OFS) of 1.1 crore shares. On the first day of bidding, the subscription reached 16%. Ahead of the IPO opening, the electric two-wheeler company had secured Rs 1,340 crore from anchor investors.