Ather Energy shares make a muted market debut; stock list at 2% premium

Shares of Ather Energy made a muted Dalal Street debut on Monday, May 05 as the electric two-wheeler player was listed at Rs 328 on NSE, a premium of 2.18 per cent over its issue price of Rs 321. Similarly, the stock kicked-off its maiden trading session with a premium of 1.57 per cent over the given issue price at Rs 326.05 on BSE.

Listing of Ather Energy shares has been slightly below the expected lines. Ahead of its listing, Ather Energy shares were commanding a grey market premium of Rs 10-12 apiece, suggesting a mild listing pop of 3-4 per cent for the investors. The premium in the unofficial market has seen a strong recovery post the closure of the issue.

The IPO of Ather Energy was open for bidding between April 28 and April 30. It sold its shares in the fixed price band of Rs 304-321 per share with a lot size of 46 shares. The electric two-wheeler maker raised a total of Rs 2,980.76 crore from its IPO, which included a fresh share sale of Rs 2,626 crore and an offer-for-sale (OFS) of up to 1,10,51,746 equity shares.

The issue was overall subscribed only 1.43 times. The portion for qualified-institutional bidders (QIBs) was subscribed about 1.70 times. The portion for non-institutional investors (NIIs) was booked just 66 per cent, while the allocation for retail investors was booked 1.78 times during the three-day bidding. Allocation for employees was booked 5.43 times.

Incorporated in 2013, Bengaluru-based Ather Energy is a pure-play electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. It operates as a vertically integrated EV manufacturer with a focus on product and technology development.

JM Financial, Axis Capital, HSBC Securities & Capital Markets, Nomura Financial Advisory and Securities (India) enacted as the book running lead managers of the Ather Energy IPO, while Link Intime India served as the registrar for the issue.