Ather Energy IPO gets fully subscribed on day three as QIBs, NIIs rush in
Despite broader market conditions, the EV-maker’s IPO has been fully subscribed, with the portion reserved for qualified institutional buyers being subscribed 1.7X times.
Hero MotoCorp-backed Ather Energy’s IPO braved market conditions and was fully subscribed on Wednesday—its third and final day, with the total offering subscribed 1.43X.
The company’s IPO was subscribed 16% on day one, and saw a slower second day, with only 28% of the total issue being subscribed.
The portion of the offering reserved for qualified institutional buyers (QIB) was subscribed 1.7X times after receiving no bids on the first two days of the process.
Typically, bids from QIBs come in later as they wait to gauge general market sentiment before bidding.
Non-institutional investors segment saw 66% of the portion subscribed, while retail and employee categories continued to see strong demand, with the portions subscribed 1.78X and 5.43X, respectively.
In comparison, rival Ola Electric’s IPO last year was subscribed 4X on the final day while foodtech major Swiggy’s issue was subscribed 3.59 times and FirstCry’s issue was subscribed 12.2X.
Tiger Global-backed Ather Energy’s IPO constitutes a fresh issue of Rs 2,626 crore and an offer for sale (OFS) of 1.1 crore shares.
The Bengaluru-based company has set the price band for its IPO between Rs 304 and Rs 321 per share, valuing Ather at Rs 11,956 crore ($1.4 billion) at the upper end of the offering.
IPO subscription for anchor investors opened on April 25, and Ather raised Rs 1,340 crore from domestic and foreign investors, including Morgan Stanley Investment Funds, Custody Bank of Japan, and the State Bank of India.
Ather Energy had trimmed its IPO size to Rs 2,626 crore from its previous target to raise Rs 3,100 crore amid turbulent market conditions. The tentative listing date on the BSE and NSE is May 6.
Edited by Jyoti Narayan