Resurfacing: Ather Energy IPO hit 0.24x on Day 2 back in April; retail portion was fully subscribed
Resurfacing an April 29 update from Inc42, Ather Energy's IPO had been subscribed about 0.24 times overall on its second day of bidding, while the retail investor allocation was fully booked.
What happened
Ather Energy’s IPO was subscribed 28% on its second day, or 0.24 times overall, while the retail investor portion was fully booked, according to an April 29,
Key facts
- 28% overall subscription on Day 2
- 0.24x subscription
- Retail portion 100% booked
- April 29, 2025
Why this matters
The split between fully booked retail demand and weak aggregate subscription suggests Ather has consumer brand momentum but may need stronger proof of scale and profitability for strategic partners.
What to watch
- Final subscription data shows QIB demand above 1x or remains materially undersubscribed.
- A sharp rise or fall in grey-market premium before allotment.
- Changes in IPO pricing, anchor allocations, or disclosed demand from domestic mutual funds and foreign institutions.
- Quarterly evidence of improving vehicle deliveries, market share, unit economics, and service-network execution.
- Competitor price cuts, incentive campaigns, battery-supply disruptions, or changes in Indian EV subsidies and financing conditions.
- Monitor final-day QIB, NII/HNI, and employee subscription separately from retail demand.
- Assess the issue valuation against listed two-wheeler and broader EV peers, with emphasis on revenue growth, gross margin trajectory, cash burn, and path to profitability.
- Watch grey-market premium and anchor-investor activity as indicators of expected listing performance, while treating both as sentiment signals rather than fundamentals.
- Track management commentary on manufacturing utilization, dealership expansion, charging network investment, battery sourcing, and competitive response from Ola Electric, TVS, Bajaj, and Hero.
- Prepare for a potential post-listing retail-volatility trade: strong retail interest may sustain initial liquidity but does not offset weak institutional sponsorship.