Shares of Ather Industries Limited The stock is all set to debut in the market on Friday. ather stock Will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on June 3 at 10 am. The Initial Public Offering (IPO) of Ather Industries received a good response from investors during its membership period. The public issue was booked 5.26 times on the last day of subscription. Abhay Doshi, Founder, UnlistedArena.com, said, “Ather Industries has received a better response than the recent IPOs.” Strong interest from institutional investors, good gray market premium and experienced promoters – Market observers expect positive listing for Ather Industries IPO on Friday.
Ather Industries opened its initial public offering from May 24 to May 26. The price band has been set at Rs 610 to Rs 642. The Ather IPO consists of a fresh issue of Rs 627 crore and an offer-for-sale (OFS) of Rs 28. 20,000 equity shares. Promoter Purnima Ashwin Desai sold stake through OFS.
As per data available by the National Stock Exchange (NSE), the IPO of Ather Industries received bids for 5.85 crore shares against 93.56 lakh shares. The portion set aside for Qualified Institutional Buyers (QIBs) was subscribed 17.57 times, while the quota allocated for non-institutional investors (NIIs) was subscribed 2.57 times. The category reserved for retail individual investors (RIIs) was subscribed 1.14 times.
According to market experts, the unlisted shares of Ather Industries were trading at a premium of Rs 23 in the gray market prior to the listing.
Ather IPO Valuation
On the valuation of the public issue, Amarjeet Maurya, AVP – Mid Cap, Angel One Ltd said, “Ather Industries has received good response from investors. In terms of valuations, the post-issue TTM P/E works out to 75.6x (at the upper end of the issue price band), which is reasonable considering Ather Industries’ historical top-line and bottom-line CAGR of 50 per cent. and 75 per cent respectively in FY19-21. In addition, Ather Industries has a diverse client base, strong financial track record and high ROE. Taking into account all the positive factors, we believe that this assessment is at an appropriate level.”
“Thus, we are positive on the IPO for the long term,” he added.
Ather IPO Listing Expectations, Strategy
“Experienced promoters, good margins and impressive top-bottom line growth works in favor of the company. However, the issue had a considerable cost. Amidst the market volatility, we may see listing on a positive note and the issue may get listed at a nominal premium of around 3-5 per cent,” Doshi said.
“Given the volatility in the global equity market and the high demand valuations, we are not expecting any significant listing gains from these IPOs. We had given a “Subscribe with caution” rating to these IPOs. Rajnath Yadav, Research Analyst, Choice Broking said, “Investors who have got allotments are advised to exit the listing.
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