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Published on
May 7, 2025
5 min read
Ather Energy IPO Falls Over 8% After Weak Listing
Ather Energy made a disappointing debut on the stock market with its IPO. The EV company’s shares fell over 8% on the first trading day. Fortune India said that the electric two-wheeler manufacturer lost ₹782 crore in market value after a dull start on Dalal Street. This drop pushed Ather Energy’s market capitalisation down to ₹11,174 crore from ₹11,956 crore before the listing.
The stock opened at ₹328 on the NSE, a 2.18% gain over the issue price of ₹321, but ended the day at ₹300, down 8.54%. On the BSE, the shares closed at ₹302.50, a 7.22% decline.
Subdued Listing Despite Market Expectations
Ather Energy IPO listing fell short of market expectations. Before the debut, the stock was commanding a grey market premium (GMP) of ₹14, suggesting a listing price near ₹335. However, actual listing prices were lower, ₹326.05 on the BSE and ₹328 on the NSE.
GMP had shown early strength, peaking at ₹17 on April 22. But investor enthusiasm faded, and the premium dropped to zero after the IPO closed. In intraday trade, their stock price hit a high of ₹333 before falling to a low of ₹299.10.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, “As expected, we see a flat listing, which was justified, as the issue was aggressively priced, especially when benchmarked against peer OLA Electric.” He added that the EV segment is “high growth, high competition, and high cash-burning,” which increases risk for short- to medium-term investors.
Weak Investor Response to IPO
The ₹2,981 crore Ather Energy’s IPO received only a moderate response from investors. The IPO was subscribed just 1.5 times by the end of its three-day window from April 28 to April 30. The issue saw bids for 7.67 crore shares against an offer of 5.11 crore.
Qualified Institutional Buyers (QIBs) stepped in on the final day, subscribing to their quota of 1.76 times. Retail investors also showed some interest, with a 1.89 times subscription. However, Non-Institutional Investors (NIIs) subscribed only 69% of their allotted shares. The employee quota saw the highest interest, subscribed 5.43 times subscribed.
Tapse explained the last-minute QIB participation as a rescue move. “It suggests a lack of broad-based enthusiasm and raises concerns about the IPO’s inherent demand quality,” he noted. He advised high-risk investors to hold the stock while recommending that conservative investors wait for a better valuation.
What’s Next for Ather Energy Shares?
Ather Energy shares closed well below their issue price, causing investor losses of ₹782 crore. This performance raised concerns among market watchers, especially as the stock had shown promise in the unlisted market before debuting.
Analysts believe that the market price of Ather Energy will remain volatile in the short to medium term. The EV space continues to be highly competitive, and profitability remains uncertain for many players, including Ather.
Despite being one of the first EV companies to go public in FY26, Ather’s muted debut shows that investor sentiment remains cautious. Analysts are now watching how the company manages competition, costs, and future growth.
