Ather Energy's IPO Debut: Shares List at ₹328, Reflecting a Modest 2% Premium

On May 6, 2025, Ather Energy, a prominent player in India's electric two-wheeler segment, made its debut on the stock exchanges. The company's shares listed at ₹328 on the National Stock Exchange (NSE), a 2.18% premium over the IPO price of ₹321. On the Bombay Stock Exchange (BSE), the stock opened slightly lower at ₹326.05, marking a 1.57% gain. (India Today, Business & Finance News)

IPO Subscription Details

Ather Energy's Initial Public Offering (IPO), valued at ₹2,981 crore, was open for subscription from April 28 to April 30, 2025. The IPO witnessed a subscription rate of 1.43 times, with strong participation from Qualified Institutional Buyers (QIBs) and retail investors. However, the Non-Institutional Investor (NII) segment saw a lower subscription rate. (Samco, Business News Today)

Post-Listing Performance

Despite the positive listing, Ather Energy's shares faced selling pressure shortly after debuting. The stock declined by over 5% from its listing price, trading at ₹310.40 at 10:44 AM IST. This decline reflects investor concerns over the company's profitability and the competitive landscape of the electric vehicle (EV) market. (Reuters, The Economic Times)

Financial Overview

Ather Energy reported a net loss of ₹1,059.7 crore in FY24, a significant increase from ₹864.5 crore in FY23. The company's revenue remained relatively flat at ₹1,753.8 crore in FY24 compared to ₹1,780.9 crore in FY23. These figures highlight the challenges Ather faces in achieving profitability amidst rising operational costs and intense market competition. (Samco, Financial Times)

Market Context

Ather's listing comes at a time when India's IPO market is experiencing a slowdown. In 2025, overall IPO proceeds in India have dropped by 15%, with several companies delaying their public offerings due to economic uncertainties and geopolitical tensions. Ather's IPO was seen as a litmus test for investor sentiment in the EV sector, especially after the underwhelming performance of rival Ola Electric, whose shares have declined by 36% since its 2024 listing. (Reuters)

Future Outlook

Despite the initial market reaction, Ather Energy remains committed to its growth strategy. The company plans to utilize the IPO proceeds to establish a new manufacturing facility in Maharashtra, invest in research and development, and expand its charging infrastructure. These initiatives aim to enhance Ather's market position and drive long-term profitability. (Samco, Reuters)

Ather Energy's modest listing underscores the cautious investor sentiment towards the EV sector amidst profitability concerns and market competition. While the company's growth plans are ambitious, achieving sustainable profitability will be crucial for long-term investor confidence.(Reuters)