Ather Energy IPO allotment status declared. What GMP signals ahead of share listing date
Ather Energy IPO listing date has been scheduled for tomorrow (Tuesday, May 6). Ather Energy IPO allotment was finalised on Friday, May 2. For those who have been allocated shares, the crediting of shares to demat accounts will occur today, Monday, May 5. The process of refunding those who have not yet received their shares will likewise be finished today.
Electric two-wheeler maker launched its IPO for subscription from Monday, April 28 to Wednesday, April 30. By the conclusion of the bidding period, the offering received a decent response, particularly from retail investors showed a subscription rate of 1.78 times, followed by qualified institutional buyers (QIBs) at 1.70 times, and non-institutional investors (NIIs) who subscribed 66%. Employees showed a subscription rate of 5.43 times. Notably, on the third day of the IPO, the Ather Energy IPO subscription status stood at 1.43 times, as per BSE data.
“The final day subscription surge—particularly from Qualified Institutional Buyers (QIBs)—suggests a last-minute effort to support the issue amid fears of under-subscription. This points to a lack of broad-based enthusiasm and raises concerns about the IPO’s inherent demand quality. As a result, we expect a flat to mildly negative listing, likely in the range of ±5% under the best-case scenario,” said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.
Ather Energy IPO allocated at least 75% of the shares in the public offering for QIB, up to 15% for NII, and no more than 10% of the total offer for retail investors. Additionally, a maximum of 100,000 equity shares has been reserved for employees, along with a discount of ₹30 per share.
Tiger Global-backed Ather Energy IPO price band was set between ₹304 and ₹321 per equity share, with a face value of Re 1.
Let's check what does Ather Energy IPO GMP today signal ahead of listing.
Ather Energy IPO GMP today or grey market premium is +7. This indicates Ather Energy share price were trading at a premium of ₹7 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ather Energy share price was indicated at ₹328 apiece, which is 2.18% higher than the IPO price of ₹321.
According to the grey market activities observed over the past 14 sessions, the current GMP is at ₹7 and indicates a downward trend. The minimum GMP recorded is ₹0.00, while the maximum GMP is ₹17, as per insights from investorgain.com experts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Ather Energy IPO consists of fresh issuance of equity shares worth ₹2,626 crore, along with an offer-for-sale (OFS) of 1.1 crore equity shares from promoters and other shareholders. The OFS includes existing investors like National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd, IITM Incubation Cell, IITMS Rural Technology and Business Incubator, along with promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain, who are selling their shares.
Ather intends to use the total proceeds from the IPO to invest ₹927.2 crore in setting up an electric two-wheeler manufacturing plant in Maharashtra, ₹40 crore for debt repayment, ₹750 crore for research and development initiatives, and ₹300 crore for marketing efforts. These funds will be allocated over the fiscal years 2026 to 2028.
Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are appointed as the book running lead managers for the Ather Energy IPO, while Link Intime India Private Ltd serves as the registrar for this offering.
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