Ather Energy IPO Day 2: Issue subscribed 28%; retail, employee portions fully booked

The initial public offering of Indian electric two-wheeler maker firm - Ather Energy Ltd (AEL) - commenced on Monday, April 28, aiming to raise Rs 2,981.06 crore. The share sale window will conclude on April 30. On the second-day of the bidding process, the issue subscribed to 28 per cent. It comprises a fresh issue of Rs 2,626.30 crore and an offer for sale (OFS) of Rs 354.76 crore by existing shareholders.

The company has fixed the price band for the issue between Rs 304 and Rs 321 per equity share with a lot size of 46 shares.

On Friday, April 28, ahead of the public offering, the E2W manufacturer secured Rs 1,340 crore from anchor investors, including Custody Bank of Japan, Franklin Templeton, and the Abu Dhabi Investment Authority.

On the second day of the share sale process, the issue received a total subscription of 28 per cent, according to the BSE. The retail portion has been fully subscribed, while Non-Institutional Investors (NIIs/HNIs) subscribed to 0.27 per cent.

Meanwhile, the employee quota witnessed a 3.18 times subscription, the data showed. With minimal interest across all categories, Qualified Institutional Buyers (QIBs) have applied for 7,636 shares, accounting to zero per cent subscription.

The issue has been subscribed 16 per cent on the first day of the bidding process, as per BSE data, with the retail portion booked at 63 per cent to 61,25,544 shares against 97,34,319 shares, non-institutional investors at 16 per cent to 23,08,326 shares against 1,46,01,478 reserved for them, and the employee quota nearly fully oversubscribed at 178 per cent to 1,77,744 sharesagainst 1,00,000 shares.

Meanwhile, from the Qualified Institutional Buyers (QIBs) have applied bidding for 5,060 shares, accounting zero per cent response from the category.

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The company plans to utilise the proceeds to establish a new manufacturing plant in Maharashtra, invest in research and development, repay debts, and enhance marketing initiatives.

Here is a summary of the utilisation of funds:

Subscribers will be notified of their allotment on May 2, 2025. The Ather Energy stock will likely debut on May 6, 2025, on the BSE and NSE.

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