Ather Energy IPO: Subscription Begins! Experts Divided on Investment Decision, Check

Ather Energy IPO: Investors generally look for investment opportunity in IPO for a good return in short-term. Being Ather Energy IPO as first mainboard IPO of 2025-26 in India, people are curious to know whether they should invest or avoid in it. There are different opinions of experts about investment in the IPO.

Key details of Ather Energy IPO

• IPO subscription date: 28th to 30th April 2025

• Tentative allotment: 2nd May 2025

• Tentative listing: 6th May 2025

• Issue price band: ₹ 304 to ₹ 321 per share

• Lot size: 46 shares

Objectives of Ather Energy IPO

• Funding Capital Expenditure For New Manufacturing Facility in Maharashtra ( 927.3 Crore)

• Investment in Research and Development ( 750 Crore)

• Expenditure Towards Marketing Initiatives (300 Crore)

• Repayment Of Debt (30 Crore)

• General Corporate Purpose (608.8 Crore)

About Ather Energy

• Ather is India's 4th largest electric two wheelers manufacturer having around 12% market share currently

• There is strong demand for its family convenience product 'Rizta' .

Positive points of Ather Energy

• Ather is working on two new platforms. These platforms can help Ather to accelerate growth and to gain market share.

o EL (Scooter Platform): This platform is in an advanced stage to be more cost-effective and to create a broader range of scooters to provide buyers affordable options also.

o Zenith (Motorcycle Platform): This platform is being developed to support a new series of 125cc to 300cc motorcycles.

• Cost reduction Initiatives, decrease in warranty costs, electronics and automotive components by significantly investing in research and development has increased the gross margin. Further improvements and operational efficiencies can ensure profitability.

• Ather is aiming for expansion especially in the Non-South markets which can boost revenue and volume growth in future.

• Ather Energy has shown better corporate governance, product build-quality, customer satisfaction. It has lower product failures than its direct competitor OLA.

• It has strong backing of Hero Motocorp Limited . Hero MotoCorp is the largest shareholder in Ather with around 40% stake and it will not offder it shares for sale in the IPO.

Negative points of Ather Energy

o OLA is the biggest competitor as it is providing it electric two-wheelers in various ranges and is around 2.5 times larger company

o Reporting loss continuously year by year

o It relies on imports from countries like China, which can be affected if there is any change in government policy.

Ather Energy IPO: Anchor investment

Ather Energy has received ₹1,340 Crore from anchor investors including SBI, Abu Dhabi Investment Authority (ADIA), Invesco, Franklin Templeton, ICICI Prudential, Morgan Stanley, and Societe Generale. These shares were allotted at ₹321 each.

Grey market premium (GMP) of Ather Energy IPO

On 22nd April 2025, GMP of the IPO was ₹ 40 per share. It kept on decreasing as ₹5 then ₹3.Current GMP is under ₹2. Seeing this trend of GMP possibility of listing gain is doubtful.

Opinions of experts on investment in Ather Energy IPO

o Subscribe. Arihant Capital said, "Ather Energy is strongly positioned in India's fast-growing electric two-wheeler market, backed by its early-mover advantage, premium product positioning, and a robust in-house R&D and technology ecosystem...’’

o Subscribe. Ventura Securities said "We recommend you subscribe for listing gains. Its premium focus, Ather Grid, and R&D-driven innovation differentiate it from competitors. The company is going through major capex with its Ather Factory 3.0 (will have 10 Lakhs unit capacity by mid-FY26). This comes despite challenges such as subsidy cuts and low capacity utilization."

o Avoid. SBI Securities has concerns such as the company's inability to achieve profitability, intensifying competition in the electric two-wheelers segment from TVS, Bajaj and Hero etc.

o Kunvarji Wealth Solutions : Subscribe for long term

o Bajaj Broking: Subscribe for long term

From all the above recommendations, it can be understood that there is very less possibility of profit in the short-term by investing in the Ather Energy IPO. Only those investors should invest who can take risk and can hold for long-term.

Disclaimer: This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.