The much-awaited Ather Energy IPO has opened for subscription today, April 28, and investors are eager to know if this electric vehicle (EV) giant is worth their attention. A mainboard issue, the price band of the issue is set between Rs 304 and Rs 321 per share but opinions from brokerages are mixed. Although some of the brokerages remain optimistic about the long-term potential of the company, others caution about its high valuation and financial challenges.
Overview of Ather Energy IPO
Ather Energy has opened its public offering tody with a price band of Rs 304 to Rs 321 per share. The bidding opened on April 28, and will close on April 30. If you arere looking to buy, the final allotment will be announced on May 2, and the stock is expected to list on the BSE and NSE on May 6.
However, despite the excitement, the subscription numbers so far of this first mainboard issue in the FY26 tell a different story. As of Day 1 so far, the IPO was subscribed only 0.04 times. The retail portion was subscribed 0.21 times, while the Qualified Institutional Buyer (QIB) and Non-Institutional Investor (NII) categories had minimal subscriptions.
Brokerages view on Ather Energy IPO
What are the brokerages recommending about Ather Energy IPO? Let’s take a look- .
Deven Choksey Reseach on Ather Energy IPO: Avoid the IPO for now
Deven Choksey, a key name in brokerage circles, has a cautious stance on Ather Energy’s IPO. The brokerage believes that while Ather Energy has a strong innovation and engineering base, its path to profitability is fraught with challenges.
“As an industry leader in the electric two-wheeler space, Ather Energy has strong growth potential,” added the brokerage report. Furthermore, it noted, “However, the company is currently overpriced at a 6x EV/Sales multiple, compared to established players like TVS Motor (3.5x) and Bajaj Auto (5.4x). This high valuation may not justify the investment at this stage.”
Despite its innovations such as the upcoming “Rizta” and “EL platform,” Choksey recommends avoiding the IPO for now. The brokerage further advises that investors could consider buying the stock at a more attractive valuation in the secondary market.
Geojit on Ather Energy IPO: A high-Risk long-term bet
On the other hand, Geojit, another leading brokerage, is more optimistic but still cautious about Ather Energy. The brokerage in its report points out the company’s growth phase and strong focus on research and development, which positions it well for the future.
“Despite the expensive EV/Sales ratio, Ather Energy’s position as a pioneer in the electric two-wheeler market makes it a strong contender for growth,” says a Geojit report. “However, given the challenges with profitability and valuation concerns, we recommend this IPO for high-risk investors who have a long-term perspective,” noted the brokerage report
The brokerage also highlights key risks, such as reliance on suppliers for EV components, and the potential for supply chain disruptions, particularly from China. “Any disruption in the supply of lithium-ion cells could negatively impact Ather’s operations,” Geojit adds.
Bajaj Broking on Ather Energy IPO: Caution on financials, Long-term potential
The brokerage firm, Bajaj Broking takes a deeper dive into Ather Energy’s financial. As per the brokerage report, the company has been consistently posting losses, with a net loss of Rs 1,059.7 crore in FY24 and Rs 577.9 crore for the first nine months of FY25.
“While Ather Energy is making strides in expanding its manufacturing capacity, its financial health remains weak,” notes a Bajaj Broking report.
Furthermore, the brokerage house in its report noted that, “The company’s negative earnings per share (EPS) and return on net worth (RoNW) reflect ongoing financial struggles. Given its accumulated losses and high borrowings, this IPO is a long-term investment story.”