Ather Energy’s ₹2,981 Crore IPO Draws Tepid Grey Market Premium Ahead Of Listing

Electric scooter maker Ather Energy, backed by Hero MotoCorp, drew muted interest in the grey market on Tuesday ahead of its ₹2,981 crore ($357 million) initial public offering (IPO). 

Shares were trading at a premium of just ₹1.5 over the upper end of the ₹304–₹321 price band, implying a marginal listing gain of 0.47% at ₹322.5, according to InvestorGain.

As of 12:35 p.m. IST, the IPO was subscribed only 0.24 times. 

The offering opened on April 28 and will close on April 30. Listing is scheduled for May 6, and the lot size is set at 46 shares. 

The issue comprises both a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.

Founded in 2013, Ather Energy is one of India’s leading electric two-wheeler (E2W) manufacturers. It sold 109,577 units in FY24 and 107,983 units during the nine months ending December 31, 2024. 

The company operates 265 experience centres and 233 service centres across India, along with a presence in Nepal and Sri Lanka.

Ather's annual manufacturing capacity stands at 2,66,850 units, all produced at its facility in Hosur, Tamil Nadu. 

Its business model emphasizes vertical integration, a software-centric product ecosystem, premium market positioning, and capital-efficient operations.

Ather’s expansion strategy brings it into direct competition with established players like Ola Electric, which leads in volumes but has faced scrutiny over product reliability and after-sales service.

SEBI-registered analyst Aditya Hujband posted on Stocktwits that Ather’s strengths include in-house R&D, which has led to innovations such as touchscreen dashboards, and a strong focus on quality that enables premium pricing. 

He also highlighted Ather’s leadership in the performance scooter segment and its push into electric motorcycles.

However, Hujband flagged concerns around Ather’s continued negative cash flows, a limited product lineup largely centered on the Ather 450X, and a high reliance on key management personnel—risks that could weigh on investor sentiment.

Shares of Hero MotoCorp have declined 7.2% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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