Ather Energy IPO Fully Subscribed: 7 Key Insights After QIBs Jump In

Ather Energy IPO fully subscribed-that’s the headline dominating startup and tech news this week as the Bengaluru-based electric scooter manufacturer’s Rs 2,981 crore public issue saw a dramatic turnaround on its final day. After a slow start, the IPO was fully subscribed, thanks to a surge in demand from Qualified Institutional Buyers (QIBs) and strong participation from retail investors. This article explores how the QIBs’ last-minute jump in changed the game, breaks down the subscription numbers, compares Ather Energy to its biggest rival Ola Electric, and discusses what this means for investors and India’s electric vehicle (EV) startup scene.

If you want to know why the Ather Energy IPO fully subscribed story matters, read on-Startup INIDAX brings you all the details, numbers, and expert insights.

Ather Energy IPO: The Build-Up and Final Day Turnaround

The Ather Energy IPO fully subscribed story didn’t start with fireworks. For the first two days, the Rs 2,981 crore IPO, which opened on April 28 and closed on April 30, saw muted demand. By the end of Day 2, only 30% of the shares were taken up, with QIBs largely staying away and retail investors doing most of the heavy lifting.

But everything changed on Day 3. As the clock ticked down, QIBs jumped in with large bids, pushing the overall subscription to 1.5 times the shares on offer. The turnaround was dramatic and signaled renewed confidence in Ather’s business model and the broader EV narrative in India.

IPO Subscription Details: Breaking Down the Numbers

Let’s break down the numbers to understand how the Ather Energy IPO fully subscribed after QIBs jump in:

• QIBs: Subscribed 1.76 times; the real momentum came from this segment on the final day.
• Retail Investors: Showed strong interest, subscribing 1.89 times their quota.
• Non-Institutional Investors (NIIs): Subdued response, only 0.69 times subscription.
• Employees: Overwhelming response, with 5.43 times subscription.

In total, Ather Energy received bids for 7.67 crore shares against the 5.11 crore shares on offer, with 2,73,370 total applications.

Why Did QIBs Jump In?

The big question: Why did QIBs jump in and drive the Ather Energy IPO fully subscribed?

• Market Sentiment: QIBs often wait until the last day to assess overall demand and market conditions. Their late surge is a sign of confidence in Ather’s fundamentals and the Indian EV sector’s growth potential.
• Anchor Investors: Ather Energy had already mobilized Rs 1,340 crore from anchor investors, which likely boosted QIB confidence.
• EV Sector Optimism: Despite short-term risks, the long-term outlook for electric mobility in India remains strong, attracting institutional capital.

Retail and NII Response: Mixed Sentiment

While retail investors showed robust participation, NIIs were more cautious:

• Retail Investors: Subscribed nearly twice their allotted shares, reflecting strong interest from individual investors who see Ather as a promising EV play.
• NIIs: Subscribed only 69% of their quota, possibly due to concerns over valuation and sector risks.
• Employee Quota: The employee reserved portion was a standout, with over five times subscription, indicating strong internal faith in the company’s future.

How Ather Energy Stands Out from Ola Electric

Ather Energy’s IPO has naturally drawn comparisons to Ola Electric, another major player in India’s EV market:

• Revenue and Scale: Ola Electric’s revenues in FY24 were nearly three times higher than Ather’s, but Ola’s rapid growth has come with much higher losses and cash burn.
• Business Model: Ather Energy positions itself as a premium, technology-driven brand with a disciplined approach, lower cash burn, and better per-vehicle margins.
• Market Share: Ather’s market share is about one-third of Ola’s, but its focus on quality and innovation sets it apart.
• Supply Chain: Ather relies on imported components, especially from China, which exposes it to supply chain risks and regulatory changes.

What Analysts and Brokerages Are Saying

Despite the Ather Energy IPO fully subscribed after QIBs jump in narrative, not all analysts are bullish:

• Valuation Concerns: Some brokerages, like Deven Choksey Research, flagged the IPO’s valuation at an EV-to-sales multiple of 6x as “overvalued.” They suggested waiting for better value post-listing.
• Industry Risks: Analysts highlighted risks such as supply chain dependencies (especially on China), regulatory uncertainties, and the high cost of critical components like lithium-ion cells.
• Long-Term Potential: The consensus is that while short-term risks exist, Ather’s disciplined approach and focus on innovation position it well for long-term growth.

IPO Allotment and Listing: What Happens Next?

• Allotment Date: The share allotment for Ather Energy’s IPO is expected to be finalized on May 2.
• Demat Credit and Refunds: Shares will be credited to successful applicants’ Demat accounts on May 5. Refunds for unsuccessful bidders will also be processed on the same day.
• Listing Date: Ather Energy’s shares are scheduled to debut on both BSE and NSE on May 6.
• Registrar: Link Intime India is the official registrar for the IPO.

How to Check Your Ather Energy IPO Allotment Status

Checking your IPO allotment status is simple:

On Link Intime India:

• Visit Link Intime’s IPO Allotment Page.
• Select ‘Ather Energy Limited’ from the dropdown.
• Choose your search mode: PAN, Application Number, or DP/Client ID.
• Enter your details and click ‘Search’.

On NSE:

• Go to the NSE IPO allotment page.
• Navigate to ‘Market Data’ > ‘Equity & SME IPO Bid Details’.
• Select ‘ATHER’ from the list.
• Enter your PAN and Application Number, then submit.

Risks and Opportunities for Investors

Opportunities:

• Exposure to India’s fast-growing EV market.
• Backed by major investors like Hero MotoCorp.
• Focus on premium, tech-driven products and disciplined financials.

Risks:

• High valuation compared to industry peers.
• Supply chain vulnerabilities, especially reliance on imports from China.
• Sector volatility and regulatory uncertainties.
• Competition from larger players like Ola Electric and traditional automakers.

Conclusion: What Ather’s IPO Means for India’s EV Ecosystem

The Ather Energy IPO fully subscribed after QIBs jump in is a positive signal for India’s startup and EV ecosystem. It demonstrates that institutional and retail investors are willing to back innovative, homegrown brands-even in a volatile market. For Ather, the successful IPO provides fresh capital to scale operations, invest in R&D, and expand its footprint. For investors, the listing will be closely watched as a bellwether for the broader EV sector’s prospects.

At Startup INIDAX, we believe Ather’s journey from a cautious IPO start to a fully subscribed issue reflects both the promise and the challenges of India’s electric mobility revolution. Stay tuned for more updates, expert analysis, and startup news that matter.