Ather Energy may have built one of the strongest EV brands in India, but its IPO isn't zipping off the blocks.
By the morning of Day 2 of the Rs 2,981 crore public issue, the overall subscription stood at just 17 per cent. The retail portion was subscribed 69 per cent, while the QIB quota barely moved, just over 5,000 shares bid for, against 2.89 crore available. The employee quota, interestingly, was already fully taken (1.78 times subscribed), showing internal faith, but public enthusiasm is clearly muted.
Investors often look at the grey market premium (GMP) as a temperature check. Right now, it's not even lukewarm. The GMP is floating at just Rs 1 over the issue price, which tells you there's little excitement about listing gains.
That could be because this isn't a profit story yet—it's a growth and burn story.
Ather Energy IPO: Losses mount, funding fuels the tank
Ather clocked revenues of Rs 1,753.8 crore in FY24, but also reported a loss of Rs 1,059.7 crore. Borrowings stood at Rs 1,285 crore as of December 2024. It's worth noting that despite rising revenue, the company continues to run on external capital.
And that's the heart of the debate: are you betting on the future of India's EV transition, or getting too far ahead of the curve?
Broker views are split
Brokerages are split on the IPO's prospects. While firms like Arihant Capital recommend subscribing for listing gains, citing Ather's position in the fast-growing electric two-wheeler market, others like Deven Choksey Research advise caution, pointing to valuation concerns and financial performance.
Investor takeaway
Ather Energy IPO closes for subscription on April 30, 2025. The muted subscription and flat GMP suggest a cautious market sentiment. Potential investors should weigh the company's growth potential against its financial challenges before making a decision.
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