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?
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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.
