The Rs 2,981 crore initial public offering (IPO) of electric two-wheeler maker Ather Energy has been subscribed 28 percent on April 29, its second day of bidding.
Ather Energy's IPO has received bids for 1.51 crore shares, as against the issue size of 5.34 crore shares, according to data on NSE. The public issue has seen strong interest from retail investors, who have completely booked their reserved portion. Non-Institutional Investors (NII) have subscribed 27 percent of their reserved portion, and Qualified Institutional Buyers (QIBs) are yet to make any substantial bid for the IPO.
The company's employees however showed the highest interest in the IPO, with the portion reserved for them being subscribed over 3.18 times.
Should you invest in Ather's IPO?
Gaurav Garg from stock broking app Lemonn has suggested different strategies for investors to approach the issue. For aggressive, long-term investors, Garg said, "Subscribe only if you have a high-risk appetite as losses and competition are big overhangs." For conservative investors, Garg has advised them to avoid or watch from the sidelines, citing "no profitability in sight and aggressive pricing."
Read More: Ather IPO - Is it worth a ride?
IPO Details
Ather Energy's IPO comprises a fresh issue of shares worth Rs 2,626 crore and an offer-for-sale of 1.1 crore equity shares by promoters and other shareholders. The electric two-wheeler maker has set a price band of Rs 304-321 apiece for the IPO which will remain open for public subscription from April 28 to April 30.
The Bengaluru-based company raised Rs 1,340.03 crore from several institutional investors via anchor book on April 25, before the IPO opening for public subscription.
The company intends to raise funds for establishment of an electric two-wheeler factory in Maharashtra, and debt reduction. Notably, this will be the second electric two-wheeler company looking to go public after Ola Electric Mobility floated its Rs 6,145-crore IPO in August last year. Ola Electric's IPO had a fresh issue of up to Rs 5,500 crore and an OFS of up to 8.5 crore equity shares.
The electric two-wheeler company has set aside 75 percent of the issue for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.
Also Read: How Ather Energy's IPO stacks up against listed players in the industry
Ather Energy IPO GMP
The unlisted shares of Ather Energy were trading at Rs 322 apiece in the grey market, according to data on Investorgain. This marks a grey market premium (GMP) of a mere Re 1 over its IPO price of Rs 321 per share.
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