Ather Energy IPO: GMP takes a hit ahead of issue launch, falls in single digit

Ather Energy IPO, the first issue of financial year 2025-26, has seen a sharp correction in its grey market premium (GMP) even before the offering kicked off for subscription. The first mainboard issue being launched in the last 10 weeks is witnessing a muted demand in the unofficial market ahead of its launch.

Last heard, Ather Energy IPO shares were commanding a grey market premium of Rs 7 only, suggesting a listing pop of little more than 2 per cent for the investors over the upper end of the price band. However, the GMP stood around Rs 17 before the price band for the issue was announced and Rs 10 a day ago.

The IPO of Ather Energy shall kick-off for bidding on Monday, April 28 and can be subscribed until Wednesday, April 30. The electric two-wheeler maker shall be offering its shares in the range of Rs 304-321 apiece, which can be applied in a lot size of 46 equity shares and its multiples thereafter. Anchor issue shall open for bidding on Friday, April 25.

Hero MotoCorp-backed Ather Energy was incorporated in 2013. The Bengaluru-based pure-play electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems.

The Rs 2,980.46 crore-IPO of Ather energy includes a fresh share sale of Rs 2,626 crore and offer-for-sale (OFS) of up to 1,10,51,746 equity shares by its promoters and existing shareholders. The net proceeds from the fresh share sale shall be utilized towards capex, repayment of loans, investment in research and development; and general corporate purposes.

For the nine months ended on March 31, 2025, Ather Energy reported a net loss of Rs 577.9 crore, with a revenue of Rs 1,617.4 crore. After a reservation of 1 lakh shares, for its eligible employees, who will get a discount of Rs 30 apiece, QIB investors will have 75 per cent allocation, while non institutional and retail investors will get 15 per cent and 10 per cent of the net issue.

Axis Capital, HSBC Securities & Capital Markets, JM Financial, Nomura Financial Advisory and Securities (India) are the book running lead managers of the Ather Energy IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with May 6 as the tentative date of listing.