Ather Energy’s IPO Subscribed 16% on Day 1, Retail Booked Over 60%
Ather Energy, the electric scooter maker, has made a robust start to its initial public offering (IPO), with the issue being subscribed around 16% on the first day of the bidding on April 28. The retail portion of the IPO, which is reserved for individual investors, has seen a whopping subscription of over 60%. However, the quota for non-institutional investors was subscribed to the tune of 16%, while the qualified institutional buyers (QIBs) segment did not see any subscription.
The IPO, which opened for bidding on April 28, will close on April 30. The company has set a price band of ₹1,832-1,826 per equity share for the IPO, which aims to raise ₹6,000 crore.
Ather Energy’s IPO is a highly anticipated event, given the company’s rapid growth in the electric two-wheeler market. Founded in 2013, Ather Energy is a leading player in the electric scooter segment, with a presence in over 40 cities across India. The company has been growing rapidly, with its sales revenue increasing from ₹200 crore in FY20 to ₹550 crore in FY22.
The company’s IPO is a mix of fresh issue and offer for sale (OFS). The fresh issue is worth ₹3,800 crore, while the OFS is worth ₹1,200 crore. The company plans to utilize the proceeds from the IPO to augment its manufacturing capacity, expand its dealership network, and enhance its research and development capabilities.
The retail category, which accounts for 35% of the issue size, has seen a strong response, with the quota being subscribed over 60%. The non-institutional investors’ category, which accounts for 15% of the issue size, has seen a subscription of 16%. However, the QIBs category, which accounts for 50% of the issue size, did not see any subscription on the first day.
The underwriters of the IPO include Axis Capital, BofA Securities, and ICICI Securities, among others. The company has also appointed KFin Technologies as the registrar for the issue.
Ather Energy’s IPO is seen as a key test of the Indian capital markets’ appetite for new-age companies. The company’s electric scooters have gained popularity in India, with the company reporting a growth of over 100% in sales revenue in FY22. The company’s strong brand presence, combined with its rapid growth, makes it an attractive investment opportunity for investors.
In conclusion, Ather Energy’s IPO has made a solid start, with the retail portion being subscribed over 60%. The company’s strong brand presence and rapid growth make it an attractive investment opportunity for investors. The IPO will continue to be open for bidding until April 30, and investors can still participate in the issue.
