Ather Energy IPO Opens: Should You Subscribe? Here’s What Analysts Say

Published 28-04-2025, 01:24 pm
© Reuters.  Ather Energy IPO Opens: Should You Subscribe? Here’s What Analysts Say

Stocktwits - Ather Energy’s much-anticipated IPO opened for subscription on Monday, marking a major milestone for the Bengaluru-based electric scooter maker.

The ₹2,980 crore public issue consists of a fresh issue and an offer for sale (OFS), with a price band set at ₹304–₹321 per share.

The subscription window will remain open until April 30, with allotment finalisation expected by May 2 and listing slated for May 6.

This offering positions Ather as India’s third-largest IPO of the year, albeit at a valuation of up to $1.4 billion—approximately 44% lower than its initial target. The company adjusted its valuation in response to global market uncertainties.

Hero MotoCorp (NSE:HROM), Ather’s largest shareholder with a 39% stake, will not sell its shares in the public offer.

The IPO proceeds will be used to set up a new EV manufacturing facility in Maharashtra, repay debt, and fund research and development initiatives.

Brokerages have mixed views on the issue.

Arihant Capital and Ventura Securities both recommend subscribing for listing gains, highlighting Ather’s strong presence in the premium electric two-wheeler segment, product pipeline, and expanding charging infrastructure.

Ashika Research remains positive on Ather’s brand strength and technology edge but advises caution due to valuation concerns relative to peers.

BP (LON:BP) Wealth, however, advises against subscribing, citing high debt levels, ongoing losses, and overdependence on electric scooter sales.

Ather’s grey market premium (GMP) has narrowed sharply, warranting caution. As of Monday, shares commanded a GMP of ₹5, down from ₹40 on April 22, according to IPO watch.


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