India’s electric two-wheeler manufacturer Ather Energy is set to debut on the stock exchanges on May 6, 2025, but signs from the grey market suggest a subdued listing for the EV firm.
Grey Market Trends
- As of May 5, the grey market premium (GMP) stood at ₹7, indicating a potential upside of only 2.18% over the IPO’s upper price band of ₹321.
- The GMP has steadily declined in the run-up to the listing, reflecting limited early enthusiasm from investors.
- The IPO was subscribed 1.43 times overall, with retail investors subscribing 1.78 times, QIBs 1.70 times, and NIIs only 0.66 times.
IPO Details & Fund Allocation
Ather Energy’s ₹2,981 crore IPO, open from April 28 to April 30, aims to fund:
- ₹927.2 crore for a new EV manufacturing plant in Maharashtra.
- ₹50 crore for research and development.
- ₹300 crore for marketing and brand building.
- ₹40 crore for debt repayment.
Market Sentiment & Analyst Views
Despite being an early entrant in India’s EV sector, Ather Energy has remained unprofitable since its inception in 2013. Analysts suggest that the IPO’s aggressive pricing and high competition in the EV space may contribute to short-term volatility.
