Retail buyers remained probably the most constant individuals, subscribing 1.55 instances their allotted quota. Non-institutional buyers (NIIs) subscribed to 36% of their portion, whereas certified institutional patrons (QIBs) confirmed sturdy curiosity within the remaining stretch, subscribing 1.33 instances their allocation.
GMP Slips Additional
Regardless of the improved bidding, gray market sentiment remained muted. Ather’s unlisted shares had been buying and selling at Rs 322, simply Rs 1 above the higher finish of the Rs 304–321 value band—reflecting a negligible premium of 0.31%.
The Gray Market Premium (GMP) has been on a gentle decline for the reason that IPO opened, slipping from Rs 7 pre-issue, to Rs 3 on Monday, after which to round Rs 1 by Tuesday. The autumn is essentially attributed to final week’s broader market weak spot, although some analysts imagine sentiment may get better if fairness markets stabilise.
Key Supply Particulars
The IPO contains a contemporary difficulty price Rs 2,626 crore and an offer-for-sale (OFS) of Rs 355 crore. On the higher value band, Ather Vitality is valued at round $1.4 billion—a 44% markdown from earlier fundraising targets, reflecting cautious investor sentiment within the present world setting.
Anchor buyers have already dedicated Rs 1,340 crore, with individuals together with SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Funding Authority.The Bengaluru-based electrical two-wheeler producer plans to make use of the proceeds to arrange a brand new manufacturing facility in Maharashtra, repay borrowings, and spend money on R&D, advertising and marketing, and different company functions.
Analysts Divided on Valuation: Apply or Not?
Regardless of tepid demand indicators, analysts stay cautiously optimistic.
Geojit Monetary Companies acknowledged, “On the higher value band of Rs 321, Ather’s EV/Gross sales ratio of seven.1x (FY24) seems costly. Nevertheless, as a pioneer within the E2W section and in a robust progress section, we advocate a ‘Subscribe’ score for high-risk buyers with a long-term view.”
Arihant Capital took a barely extra bullish stance: “On the higher band of Rs 321, the difficulty is valued at an EV/Gross sales ratio of 8x, primarily based on 9MFY25 gross sales of Rs 1,579 crore. We’re recommending a ‘Subscribe for itemizing acquire’ score.”
Backers and Enterprise Technique
Recognized for its in-house R&D and premium positioning, Ather Vitality lately expanded its portfolio with the launch of the Ather Rizta. Certainly one of its early institutional backers, IIT Madras, holds 15.58 lakh shares and is predicted to comprehend round Rs 50 crore from the itemizing.
With the difficulty set to shut immediately and QIB curiosity nonetheless subdued, all eyes are on a possible late surge in bidding—typically pushed by institutional buyers—to assist Ather Vitality’s IPO cross the end line.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of the Financial Occasions)
