Ather Energy IPO subscribed 16% on day one as QIBs keep away
Tiger Global-backed Ather Energy’s IPO constitutes a fresh issue of Rs 2,626 crore and an offer for sale of up to 1.1 crore shares.
Ather Energy’s initial public offering (IPO) was subscribed 16% on day one of its bidding. The employee reserved category led the pack, with shares subscribed 1.78 times.
The non-institutional investor category was subscribed 16%. However, the portion reserved for qualified institutional buyers (QIBs) failed to see many bids on day one. Typically, bids from QIBs come in later as they wait to gauge general market sentiment before bidding.
The retail portion of the offering was subscribed by more than half, at 63%.
Meanwhile, some recently listed startups also saw lukewarm responses on their day-one biddings. Rival Ola Electric, which listed in August last year, saw its IPO subscribed 35% on day one, while foodtech Swiggy’s public issue was subscribed 12% and FirstCry’s was subscribed 11%.
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 priced its IPO between Rs 304 and Rs 321 apiece. Ather will be valued at Rs 11,956 crore 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 SBI.
Ather Energy had trimmed its IPO size to Rs 2,626 crore from its previous target to raise Rs 3,100 crore amidst turbulent market conditions.
The startup will close its IPO subscription on Wednesday, April 30.
According to the red herring prospectus, the company reported a revenue of Rs 1,578.9 crore for the nine months ended December 31, 2024, compared with Rs 1,230.4 crore earned in the year-ago period.
It also managed to reel in its losses to Rs 577.9 crore for the period, from Rs 776.4 crore in 2023.
Edited by Kanishk Singh