Ather Energy's ₹2,981 Cr IPO Sees Modest Grey Market Buzz Before Listing

The electric scooter manufacturer Ather Energy, supported by Hero MotoCorp, saw limited enthusiasm from gray market investors on Tuesday prior to its $357 million IPO, which was valued at ₹2,981 crores.

The shares were being traded at a slight premium of ₹1.5 above the higher limit of the pricing range between ₹304 and ₹321. This indicates a minimal increase of 0.47%, bringing the value to ₹322.5 upon listing, as reported by InvestorGain.

By 12:35 p.m. IST, the IPO had been subscribed only 0.24 times.

The launch began on April 28 and will conclude on April 30. The listing is planned for May 6, with each lot consisting of 46 shares.

This problem includes a new issuance of equity shares as well as an offer for sale (OFS) by current shareholders.

Established in 2013, Ather Energy stands as one of India’s premier producers of electric two-wheelers. The company reported sales of 109,577 units for fiscal year 24 and saw an additional sale of 107,983 units from January to December 31, 2024.

The business manages 265 experience centers and 233 service centers throughout India, as well as having operations in Nepal and Sri Lanka.

Ather's yearly production capability amounts to 2,66,850 units, with all of these being manufactured at their plant located in Hosur, Tamil Nadu.

The company’s approach focuses on vertical integration, a software-centered product environment, high-end market placement, and efficient use of capital.

Ather’s growth plan places it squarely in competition with well-established firms such as Ola Electric, which dominates in sales volume yet has encountered questions regarding product durability and post-purchase support.

A SEBI-certified analyst named Aditya Hujband shared on Cryptonesia that Ather excels due to its internal research and development efforts, resulting in advancements like touch-screen consoles. Additionally, their emphasis on high-quality standards allows them to command higher prices for their products.

He likewise emphasized Ather's role as a leader in the performance scooter market and its move towards electric motorcycles.

Nonetheless, Hujband highlighted worries regarding Ather’s persistent negative cash flow, a narrow range of products primarily focused on the Ather 450X model, and an excessive dependence on crucial managerial staff—all factors that might dampen investors' enthusiasm.

Shares of Hero MotoCorp have dropped by 7.2% year-to-date.

To request updates or corrections, send an email to newsroom[at]Cryptonesia[dot]com.

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