Ather Energy’s initial public offering (IPO) has drawn widespread attention, with shares priced between ₹304 and ₹321 and public bidding open April 28–30, 2025. The grey market premium (GMP)—a measure of unofficial demand—spiked to ₹20 when the price band was announced, briefly touched ₹0 on Day 1, and stands at ₹3 today. With an issue size of ₹2,981 crore, strong anchor support, and 28% revenue growth in late 2024, Ather’s IPO offers both promise and risk—making GMP one key signal among many to watch.
What Is IPO GMP?
Grey Market Premium (GMP) is the extra amount investors pay above an IPO’s official price in an unofficial market before shares list on the exchange. A positive GMP indicates bullish sentiment (buyers expect a profitable listing), while a negative GMP signals weak demand. Since trades in this market are not legally binding, GMP serves as a rough sentiment gauge rather than a guarantee.
Ather Energy IPO Overview
Price Band & Bidding Dates
- Price Band: ₹304–₹321 per share
- Public Bidding: April 28–30, 2025
- Lot Size: 46 shares minimum
Issue Size & Anchor Investors
- Total Issue: ₹2,981 crore (fresh issue + offer-for-sale)
- Anchor Bidding: ₹1,340 crore pre-IPO on April 25, boosting confidence from large investors
- Listing Expected: May 6, 2025 on NSE & BSE
GMP Trends for Ather Energy IPO
- ₹20 Peak: Grey-market premium first hit ₹20 (6 %) when the price band was announced.
- Day 1 Dip: GMP plunged to ₹0 (flat at upper price) on opening day, reflecting initial caution.
- Current Level: ₹3 as of today, showing moderate optimism among traders.
Why GMP Matters
- Sentiment Snapshot: Offers real-time insight into investor appetite before listing.
- Listing Estimate: Adding GMP to the issue price gives a ballpark for listing gains.
- Unofficial & Volatile: Driven by supply–demand; can reverse quickly with market news.
Using GMP Wisely
- Combine Signals: Weigh GMP trends alongside Ather’s 28% revenue growth in nine months to Dec 2024 and analyst reports.
- Avoid Herding: Don’t chase high GMP alone—focus on long-term fundamentals.
- Assess Risk: IPOs can swing on listing day; be ready for both gains and losses.
- Do Your Research: Understand Ather’s business model, competition, and growth plans.
Conclusion
Ather Energy’s IPO blends strong backing and growth prospects with grey-market excitement. The journey from a ₹20 peak to ₹3 GMP today underscores shifting sentiment. While GMP is a helpful early indicator, investors should balance it with solid research and risk awareness before deciding.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. IPO investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.
