Retail buyers led the demand, subscribing 1.19 instances of their allotted quota, whereas non-institutional buyers (NIIs) subscribed 28%. The Rs 3,000-crore providing closes on April 30, with itemizing scheduled for Might 6.
GMP slides
Within the gray market, Ather Vitality’s unlisted shares had been buying and selling round Rs 322 on Tuesday, reflecting a muted premium of simply Rs 1—or 0.31%—over the higher finish of the worth band at Rs 321, in accordance with sources monitoring unofficial buying and selling.
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The Gray Market Premium (GMP) has weakened steadily. Earlier than the IPO opened, the GMP stood at Rs 7, dropped to Rs 3 by Monday, and slipped additional to about Rs 1 by Tuesday. Market observers attributed the decline to promoting strain on Dalal Road final Friday, however famous sentiment may enhance with a market turnaround.
Key supply particulars
Ather Vitality’s IPO consists of a recent subject of Rs 2,626 crore and an offer-for-sale (OFS) price Rs 355 crore, with a value band set between Rs 304 and Rs 321 per share. The corporate has already raised Rs 1,340 crore from anchor buyers together with SBI Mutual Fund, Franklin Templeton, and Abu Dhabi Funding Authority.On the higher band, the electrical two-wheeler maker’s valuation stands round $1.4 billion—a pointy 44% lower from its earlier goal amid cautious world market sentiment.
Proceeds from the recent subject can be used for establishing a brand new manufacturing facility in Maharashtra, repaying sure borrowings, and investing in analysis and improvement, advertising, and normal company functions.
Additionally Learn: Ather Vitality’s Rs 2,981-crore IPO opens for subscription. Must you bid amid weak GMP?
Analyst advice: Apply or not?
Regardless of the gentle gray market development, analysts stay optimistic on Ather Vitality’s fundamentals. “On the higher band of Rs 321, the difficulty is valued at a EV/gross sales ratio of 8x, based mostly on 9MFY25 gross sales of Rs 1,579 crore. We’re recommending a Subscribe for itemizing acquire ranking for this subject,” stated Arihant Capital.
Ather, recognized for its sturdy in-house R&D and early mover benefit within the premium electrical scooter market, has lately expanded its product lineup with fashions such because the Ather Rizta.
IIT Madras, considered one of Ather’s early backers via its incubation arms, holds 15.58 lakh shares and is anticipated to understand round Rs 50 crore from the itemizing.
(Disclaimer: Suggestions, solutions, views and opinions given by the specialists are their very own. These don’t characterize the views of Financial Instances)
