India’s booming EV space just witnessed a lukewarm reaction to the much-anticipated Ather Energy IPO update. As of April 29 (Day 2 of the IPO), investor enthusiasm has remained muted, raising eyebrows in D-Street circles.
Despite its premium positioning in the electric two-wheeler segment, Ather’s offering has been subscribed only 16%, with a Grey Market Premium (GMP) still holding at ₹1, hardly an exciting sign for short-term traders.
Subscription Status: Retail Interest Beats Institutions
The ₹2,981 crore public issue, which includes a fresh issue of 8.18 crore shares and an Offer For Sale (OFS) of 1.1 crore shares, opened on April 28. Day 1 ended with an overall 16% subscription, and this figure hasn’t moved forward on Day 2 either.
Among investor categories:
- Employee quota led with 1.78x subscription
- Retail investors followed at 63%
- Non-Institutional Investors (NIIs) came in at 16%
- Qualified Institutional Buyers (QIBs) showed minimal interest with only 5,060 shares bid against a massive reserve of 2.89 crore shares
This lack of institutional backing is particularly concerning, as QIBs typically signal strong confidence in a company’s fundamentals.
GMP Today: Flat Premium Reflects Cautious Sentiment
As of April 29, Ather Energy’s grey market premium remains flat at ₹1, placing unofficial trading at ₹322 per share, just marginally above the upper price band of ₹321. This amounts to a modest 0.31% premium—hardly enough to excite grey market traders.
For context, many recent IPOs have debuted with double-digit GMPs, indicating aggressive market sentiment. A flat GMP, especially in a high-growth sector like EVs, signals subdued near-term expectations.
IPO Price Band, Lot Size, and Investment Requirements
The IPO is priced in the range of ₹304 to ₹321 per share, with a lot size of 46 shares. Here’s a breakdown of investment tiers:
- Minimum investment for retail investors: ₹14,766 (1 lot)
- Maximum for retail (13 lots): ₹1,91,958
- Small-HNIs (14 to 67 lots): ₹2,06,724 to ₹9,89,322
Despite the high entry barrier for larger bids, retail investors have shown reasonable participation—perhaps driven by long-term EV growth optimism.
What Lies Ahead for Ather Energy IPO?
Before the IPO went live, Ather raised ₹1,340 crore via anchor investors, hinting at strong initial support. However, with QIBs not participating actively and GMP remaining flat, the road to full subscription looks tough unless big-ticket bids come in soon.
Retail investors still have time to assess the opportunity before the issue closes. Given Ather’s premium branding and the EV sector’s future, some long-term investors might see value, but short-term gains appear uncertain.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
