By Nandan Mandayam
(Reuters) -Indian electric scooter maker Ather Energy’s $352 million IPO reached full subscription on the final day of bidding on Wednesday after a slow start in a week where market volatility capped investor interest.
The company, which counts top motorcycle maker Hero MotoCorp as its largest shareholder, is seeking a valuation of $1.4 billion through the share sale, India’s third-largest this year.
Ather received bids worth 24.13 billion rupees ($286 million), exceeding the 17.13 billion rupees on offer, after raising 13.40 billion rupees last week from large “anchor” investors including the Abu Dhabi Investment Authority and Temasek.
Qualified institutional buyers, for whom 54% of the shares were reserved in the public offering, led with bids worth 15.6 billion rupees, followed by retail investors, who bid for 5.31 billion rupees of shares.
Hero MotoCorp did not sell its shares in the IPO.
Analysts are viewing Ather Energy’s share sale as a litmus test for India’s IPO market, where momentum has slowed down amid a broader market decline.
India’s IPO market, the world’s second-largest last year by proceeds, is down about 15% in 2025, as per LSEG data, with global market volatility and shifting U.S. tariffs forcing companies to rethink listings to avoid weak demand or failures.
Adding to the pain are recent market jitters over rising India-Pakistan tensions, which dampened investor appetite for the Ather IPO, said Aditya Kondawar, Partner & Vice President at Complete Circle Capital.
Meanwhile, analysts at brokerage Geojit said Ather’s IPO “appeared expensive”, but recommended it to high-risk investors seeking long-term gains, citing the company’s “pioneer” status and robust research and development.
Ather was one of the first companies to sell e-scooters in India in 2018, but fell behind larger rivals Ola Electric, TVS Motor, and Bajaj Auto, whose discounts and wider distribution networks have driven sales.
The company will use most of the 26.26 billion rupees it raises from the sale of new shares to build a third factory and for research and development.
($1 = 84.5040 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)
