Ather Energy IPO Final Day: Subscription remains tepid to 36% so far; retail, employee portions fully booked

The initial public offering (IPO) of Ather Energy Ltd, a electric two-wheeler (E2W) manufacturer, which opened on Monday, April 28, is set to close today, April 30. The company aims to raise Rs 2,981.06 crore through public issue. On the third and final day of the bidding process, investor response has been relatively muted, with the issue subscribed only 36 per cent so far, according to BSE data.

Issue structure

The IPO comprises a fresh issue of Rs 2,626.30 crore and an offer for sale (OFS) of Rs 354.76 crore by existing shareholders.

Price band and lot size

Ather Energy has set the price band for the IPO at Rs 304 to Rs 321 per equity share, with a lot size of 46 shares.

Final day subscription status

As of 12:12 pm, the issue received a bid of 36 per cent to 1,89,71,780 shares against 5,33,63,160 reserved for all categories. Here is how much investors have applied for the issue:

• Retail Individual Investors (RIIs): 1.38 times, subscribed for 1,34,42,856 shares
• Non-Institutional Investors (NIIs): 0.32 times (46,29,348 shares)
• Employee quota: Fully subscribed, at 3.98 times (3,98,268 shares)
• Qualified Institutional Buyers (QIBs): 2 per cent (5,01,308 shares)

Rs 1,340 crore from anchor investors

Prior to the IPO opening, Ather Energy successfully raised Rs 1,340 crore from anchor investors like Custody Bank of Japan, Franklin Templeton, and the Abu Dhabi Investment Authority on April 28.

Day 1 subscription status

• Retail: 63 per cent (61,25,544 shares applied against 97,34,319 reserved)
• HNIs/NIIs: 16 per cent (23,08,326 shares out of 1,46,01,478)
• Employee quota: 1.78 times (1,77,744 shares against 1,00,000)
• QIBs: 5,060 shares (0%)

Day 2: Overall subscription rose to 28%

• Retail quota was fully subscribed
• NIIs: 0.27 per cent
• Employee quota: 3.18 times
• QIB interest remained minimal with applications for 7,636 shares (0%)

Utilisation of IPO proceeds

The net proceeds from the fresh issue are earmarked for several strategic initiatives to support the company’s growth:

• Establishing a new E2W manufacturing facility in Maharashtra: Rs 927.2 crore
• Investment in research and development (R&D): Rs 750 crore
• Repayment or pre-payment of existing borrowings: Rs 40 crore
• Marketing and brand-building initiatives: Rs 300 crore

Listing and allotment dates

Applicants can expect to receive allotment notifications on May 2, 2025. The Ather Energy stock is expected to debut on the BSE and NSE on May 6, 2025.