Ather Energy IPO subscribed 1.43 times

The subscription was dominated by the employee-reserved portion, which witnessed a 5.43 times subscription, while the quota for retail investors was subscribed 1.78 times
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REUTERS

EV maker Ather Energy has closed bidding for its IPO with an overall subscription of 1.43 times. The first mainline IPO of FY26 saw only a muted response.

The qualified institutional buyers (QIBs) showed interest in the final stretch, subscribing 1.7 times their allocation. However, non-Institutional Investors (NIIs) quota remained undersubscribed at 66 per cent.

The subscription was dominated by the employee-reserved portion, which witnessed a 5.43 times subscription, while the quota for retail investors was subscribed 1.78 times.

Ather Energy’s IPO was priced between ₹304-321. The Bangalore-based company’s ₹2,981-crore IPO comprised a ₹2,626-crore fresh issue and an offer-for-sale (OFS) of 1.1 crore equity shares by the promoters and other existing shareholders for ₹354.75 crore.

Utility of funds

From the proceeds, ₹927.2 crore will be allocated toward setting up a new electric two-wheeler manufacturing facility in Maharashtra. An additional ₹750 crore is earmarked for investments in research and development, while ₹300 crore will be used for marketing initiatives. The company also plans to utilise ₹40 crore for debt repayment.

As part of IPO, the company mobilised ₹1,340 crore from anchor investors including Franklin Offshore, Morgan Stanley, Aditya Birla Sun Life MF, ICICI Prudential MF, Invesco MF among others.

The EV maker’s adjusted gross margin improved sharply from 9 per cent in the six months ended December 31, 2023, to 19 per cent in the same period in 2024. Simultaneously, Ather narrowed its EBITDA loss margin to 23 per cent , compared to 34 per cent in the previous year.

Founded in 2013, Ather Energy will be the second electric two-wheeler company looking to go public after Ola Electric Mobility floated its ₹6,145-crore IPO in August last year. Ola Electric’s IPO had a fresh issue of up to ₹5,500 crore and an OFS of up to 8.5 crore equity shares.

Ather Energy shares are expected tobe listed on the BSE and NSE on May 6.

Report by businessline intern Rohan Das

Published on April 30, 2025