India’s Ather Energy rose 2% in pre-open market in its trading debut on Tuesday, as investors bet on the electric scooter maker’s research and development capabilities.
The stock listed at 328 rupees on the National Stock Exchange of India, higher than its offer price of 321 rupees.
The company’s initial public offering of $352 million – the third-largest in India this year – was hauled over the finish line by institutional investors such as Abu Dhabi Investment Authority and Temasek.
While some existing investors including GIC and Tiger Global sold shares in the IPO, Ather‘s largest shareholder, Hero MotoCorp HROM.NS, did not.
Ather, one of the first companies to sell e-scooters in India in 2018, had reduced its IPO size by roughly 15% and cut its targeted valuation by 44%.
The company, whose founder refers to their tech-loaded scooters as the “Apple of electric two-wheelers”, is counting on newer models to turn profitable and close the gap with rivals Ola Electric OLAE.NS, TVS Motor TVSM.NS and Bajaj Auto BAJA.NS.
The Bengaluru-based company will use most of the IPO proceeds to build a third factory and for R&D.
Reuters
