As a rule, we have normally maintained that IPOs are mostly likely a PASS! As a result, we have not recommended any IPOs in the past several months and this is likely to continue in the future as well. However, there are always exceptions. Those that merit our attention and might makes sense to invest for the medium / long term.
Ather Energy. We think you should SUBSCRIBE to this IPO which is slated to open on April 28 (Monday). We believe that amongst the competition Ather is a premium player with a better product offering, superior service capability (as compared with the largest E2W player) and backed by Hero Motocorp will ensure that newer models / continuous R&D would help the company turn profitable.
It is however, important to note that this IPO is for investors with a High-Risk appetite and we DO NOT expect immediate listing gains (though they may come in the short term) and could also dip BELOW the offer price and therefore, if that happens you would need to average the same to make gains over the medium /long term.
We believe that the decision to invest in this IPO should be done with an intention to hold this business for the long term. We believe that a strategic shift in this business would happen over the next 2-3 years and Ather Energy is the most likely beneficiary of these events.
IPO note attached as below: