Ather Energy IPO listing will happen on May 6 following allotment confirmation on May 2. The IPO bidding period was open between April 28-30, with retail investors’ subscribing 1.78 times and institutional subscription at 1.70 times. Ather Energy share price has been going at 2% premium above the IPO price. The stock’s IPO price was between Rs 304 and Rs 321, in the grey market, signaling a potential listing price of Rs 328.
The company’s electric scooter maker’s IPO raised $352 million in its IPO, with Qualified Institutional Buyers taking the entire 54% of the shares allotted, with bids worth Rs 15.6 billion. On the other hand, retail investors’ bids came in at Rs 5.31 billion. A substantial portion of the IPO funds, equivalent to about $111 million will go toward setting up of a new e-scooter manufacturing plant in Maharashtra.
Mixed Outlook for Ather Energy Share Price
India is transitioning toward green energy, with 50% of its energy needs expected to come from renewable sources by 2030. This provides a substantial market for Ather Energy’s two-wheeler scooters. The company’s IPO attracted bids from formidable institutions, including Tamasek and Abu Dhabi Investment Authority, and boasts of having Hero MotorCorp as one of its largest shareholders.
Some analysts have interpreted Ather Energy IPO’s relatively underwhelming performance and marginal Grey Market Price (GMP) premium as a sign of a weak debut in the stock market. In addition, the company has been unprofitable since it started operations twelve years ago, which presents a weak proposition. Notably, despite being a pioneer in the EV industry , Ather has been outmuscled by relative newcomers like Bajaj, Ola Electric and TVS.
Nonetheless, the newly raised funds, some of which will go towards settling debt, marketing and R&D could inject fresh impetus in the company and help it build traction. That said, the near-term performance of Ather Energy share price could be affected adversely by the existing geopolitical tension between India and Pakistan triggered by the Kashmir attacks.
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