Ather Energy's IPO made a positive debut on the stock market. On the BSE (Bombay Stock Exchange), the stock was listed at ₹326.05, a 1.57% premium or ₹5.05 above the issue price. On the NSE (National Stock Exchange), Ather Energy’s stock was listed at ₹328, reflecting a 2.17% premium. However, despite this strong start, the overall market was witnessing a selling trend, and the stock price soon experienced a significant drop. Following the initial positive listing, Ather Energy's shares fell sharply, declining by nearly 5% from the issue price during the trading session. The stock touched an intraday low of ₹308.95 on the BSE by 10:51 AM. At 12:40 PM, Ather Energy shares were trading 5.72% lower than its listing price at ₹307.40 apiece on the BSE.
The IPO price band was set at ₹321 per share. The company had fixed a lot size of 46 shares, requiring a minimum investment of ₹14,766 from investors. Ather Energy also offered a ₹30 per share discount to its employees. The total size of the IPO was ₹2,981.06 crore, comprising both a fresh issue and an offer for sale. Through the fresh issue, the company issued 8.18 crore shares, and under the offer for sale, 1.11 crore shares were offered. The IPO opened on April 28, and investors had until April 30 to subscribe. On the final day, the IPO was subscribed 1.50 times overall. The retail category saw 1.89 times subscription, the Qualified Institutional Buyers (QIB) category was subscribed 1.76 times, while the Non-Institutional Investors (NII) category saw a lower subscription at 0.69 times.
Ather Energy operates in an intensely competitive electric two-wheeler market, facing pressure from legacy giants like Hero MotoCorp, Bajaj Auto, TVS Motor Company, and Honda and new-age players like Ola Electric. According to Avinash Gorakshakar, Head of Research at Profitmart Securities, Ather Energy share price listing was on expected lines, as the IPO price was very aggressive. “Going ahead, Ather Energy share price would depend on what data the company delivers in terms of volume growth and visibility of profits coming in. Narratives will initially drive the stock, but fundamentals will need to support it going forward,” Gorakshakar said. Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, believes that the flat listing of Ather Energy shares today was justified, as the issue was aggressively priced, especially when benchmarked against peer Ola Electric Mobility.
“We continue to believe the electric two-wheeler (EV 2W) segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concern with new investors. Given these facts and risks, we recommend a ‘Hold’ only to risk taking investors, who are comfortable with short- to medium-term volatility while conservative investors may still prefer a wait-and-watch, allowing the stock to settle with some reasonable valuation post-listing,” Tapse said.