Ather Energy IPO sees muted grey market buzz ahead of its listing

Synopsis

Ather Energy IPO: The Rs 2,626 crore IPO, unfastened from April 28 to April 30, received a mostly muted effect crossed each categories. Retail investors subscribed 1.78 times their allotted portion, portion qualified organization buyers subscribed 1.70 times. Non-institutional investors showed weaker request with a 66% subscription, but the worker quota saw beardown interest, with subscriptions astatine 5.43 times.

Ather Energy volition debut connected Indian banal exchanges connected Tuesday, May 6, with a brushed grey marketplace premium hinting astatine a subdued commencement for the electric two-wheeler maker’s shares. As of Monday, May 5, the grey marketplace premium stood astatine Rs 7, implying a marginal 2.18% upside implicit the IPO’s precocious terms set of Rs 321. Allotments were finalised connected Friday, with shares credited to capitalist accounts and refunds issued connected Monday.

The Rs 2,626 crore IPO, which was unfastened from April 28 to April 30, drew a comparatively subdued effect crossed categories. Retail investors subscribed 1.78 times their allocated portion, followed by qualified organization buyers astatine 1.70 times. Non-institutional investors lagged astatine 66% subscription, portion the worker quota saw robust request astatine 5.43 times.

The institution allocated astatine slightest 75% of the offering to QIBs, up to 15% for NIIs, and nary much than 10% for retail. A artifact of 100,000 shares was reserved for employees astatine a Rs 30 discount per share. The IPO was priced betwixt Rs 304 and Rs 321 per share, with a look worth of Re 1.

Grey marketplace premium fades

Once seen trading astatine a premium of Rs 17, Ather Energy’s unlisted shares person steadily mislaid steam successful the grey market. The GMP fell to Rs 3 past Monday and touched Rs 1 by Tuesday earlier inching up to Rs 7 connected Monday, according to information from investorgain.com. On the last time of bidding past week, the premium was conscionable Rs 1—offering small cushion for listing-day gains.

Use of proceeds

Ather intends to usage Rs 927.2 crore from the IPO proceeds to acceptable up a caller manufacturing works successful Maharashtra. Additionally, Rs 750 crore is earmarked for R&D, Rs 300 crore for marketing, and Rs 40 crore for indebtedness repayment, dispersed implicit FY26 to FY28.

The offering included a caller contented and an offer-for-sale of 1.1 crore shares by promoters and aboriginal backers specified arsenic National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd., and IIT Madras-linked entities. Founders Tarun Sanjay Mehta and Swapnil Babanlal Jain besides offloaded shares.

Analyst views mixed

Known for its premium electrical two-wheelers and in-house R&D, Ather precocious launched its household scooter model, the Ather Rizta. Early organization backer IIT Madras, which holds 15.58 lakh shares, is expected to nett astir Rs 50 crore from the IPO.

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(Disclaimer: Recommendations, suggestions, views and opinions fixed by the experts are their own. These bash not correspond the views of the Economic Times)

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