E-scooter maker Ather’s debut in focus amid India IPO revival

Ather Energy Ltd.’s shares will start trading on Indian bourses Tuesday, in the nation’s first major initial public offering this fiscal year that will provide clues on the likelihood of equity capital market revival.

The electric scooter maker’s offering of fresh and existing shares raised 29.8 billion rupees ($354 million) and was subscribed more than 1.4 times the amount offered, according to exchange filings.

Premium

Priced at the top of the marketed range at 321 rupees per share, the IPO drew big-name anchor investors, including Abu Dhabi Investment Authority, Franklin Templeton and Eastspring Investments. 

First-day trading may indicate whether recent signs of investor appetite for new listings will be lasting.

A nascent pick-up in IPO activity tracks the local stock market that was among the first to recover worldwide from losses triggered by US tariffs announced in early April, with bets that India has lower exposure to trade tensions than regional peers. 

Still, the equity selloff earlier this year on tariff-related concerns also left a mark on the IPO market as deal activity paused. Ather will be the biggest offering in India in the fiscal year that started April 1.

The last big initial share sale in the nation was Hexaware Technologies Ltd.’s $1 billion IPO in February.

IPO on hold

LG Electronics, whose float of its Indian unit could have fetched as much as $1.7 billion, recently put on hold what would have been the country’s biggest IPO so far this year. 

Indian investors are largely hoping for a repeat of 2024 performance, when ECM activity surged to a record. New listings, including Hyundai Motor India Ltd. and food delivery firm Swiggy Ltd., raised more than $20 billion during the year.

Competition

Founded in 2013, Ather makes electric scooters — a mode of transportation that’s increasingly popular in the country — and faces several key competitors, including recently listed Ola Electric Mobility Ltd. 

Ola’s shares have so far been sluggish as the company faced regulatory and compliance issues. The stock has fallen about 35% since the August debut at 76 rupees per share.