Ather Energy’s IPO sees 16% subscription on first day

The much-awaited Ather Energy IPO has finally launched, raising excitement across the electric vehicle (EV) market. With a goal to raise ₹2,981 crore, this IPO is set to be one of the most talked-about in the EV sector this year. The offer includes a fresh issue of ₹2,626 crore and an offer for sale (OFS) worth ₹354.76 crore, with the price band set between ₹304 and ₹321 per share. The IPO will be open for subscription until April 30, 2025.

What’s the Buzz on Day 1? 📈

On the first day of the subscription, Ather Energy’s IPO received a mixed response, with the total subscription at 16%. The retail segment showed moderate interest with 0.63x subscription, while institutional buyers were relatively hesitant, with Qualified Institutional Buyers (QIBs) bidding for just a fraction of the shares allocated to them. However, the employee segment saw great enthusiasm, being oversubscribed by 1.78 times.

Grey Market Premium (GMP): A Modest Start 💰

Currently, the Grey Market Premium (GMP) for Ather Energy stands at ₹1, signaling a modest listing gain for early investors. This reflects the market’s mixed sentiment towards the IPO, with investors awaiting more clarity on the company’s growth trajectory and post-listing performance.

Broker Insights: Should You Subscribe? 💡

Different brokerages have varying views on Ather Energy’s IPO. Some analysts suggest subscribing, noting the company’s solid position in the rapidly expanding electric vehicle market and its strong brand presence. Others take a more cautious stance, citing Ather’s financial challenges, including mounting losses and high debt. It’s a classic case of risk versus reward—make sure to evaluate your own risk tolerance before jumping in.

The Bottom Line: A Step Towards the Future 🌍

Ather Energy’s IPO represents more than just an investment opportunity—it’s a glimpse into the future of transportation. As India continues to embrace electric vehicles, Ather’s innovative products are well-positioned to capture the growing demand for eco-friendly mobility solutions. While the subscription figures on Day 1 were modest, the long-term potential of the EV market could provide exciting prospects for early investors.