Mon Apr 28 04:10:00 UTC 2025: ## Ather Energy IPO Opens: Analysts Suggest “Subscribe for Listing Gain,” Despite Losses

**MUMBAI, INDIA –** Ather Energy, a prominent Indian electric two-wheeler (E2W) manufacturer, launched its Initial Public Offering (IPO) on April 28th, setting the price band between Rs 304 and Rs 321 per share. The IPO comprises a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) of 1.1 crore shares by promoters and existing shareholders. This marks the second electric two-wheeler company to go public in India, following Ola Electric.

While the grey market premium (GMP) is currently reported as Re 1, leading to an anticipated listing price of Rs 322, several brokerage firms have offered contrasting perspectives on the investment opportunity.

Ventura Securities recommends subscribing for potential listing gains, highlighting Ather Energy’s premium positioning, its proprietary charging network (Ather Grid), and strong R&D. They acknowledge challenges including subsidy reductions and low capacity utilization but emphasize the company’s significant capital expenditure on its Factory 3.0, aiming for a 10 lakh unit production capacity by mid-FY26.

Bajaj Broking also advises subscription, but with a long-term outlook. They acknowledge Ather Energy’s consistent losses and high debt (over Rs 1,121 crore as of December 31, 2024), recommending caution for only well-informed investors with surplus funds. However, they point to the company’s improved profitability metrics and reduced reliance on subsidies as positive factors. At the upper price band, the IPO is valued at an EV/sales multiple of 8x.

Arihant Capital echoes the “subscribe for listing gain” recommendation, emphasizing Ather Energy’s early-mover advantage, premium products, and strong R&D. They highlight recent product launches and the upcoming Factory 3.0 expansion, which will significantly increase production capacity.

Ather Energy plans to use the fresh issue proceeds for capital expenditure, debt repayment, R&D, marketing, and general corporate purposes. The company will not receive proceeds from the OFS. Link Intime India is the registrar, and Axis Capital, HSBC Securities, JM Financial, and Nomura Financial Advisory are the book-running lead managers. The IPO presents a mixed bag for investors, with potential for short-term gains balanced against the company’s ongoing financial challenges.

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