Shares of Ather Energy, the electric two-wheeler manufacturer, made their much-anticipated debut on the stock market on May 5, 2025. However, contrary to the high expectations set before its listing, Ather’s shares started off with a subdued performance. The stock listed at Rs 328 on the National Stock Exchange (NSE), which was a premium of just 2.18% over its issue price of Rs 321. On the Bombay Stock Exchange (BSE), it opened at Rs 326.05, reflecting a 1.57% premium over its issue price.

Before the stock’s listing, Ather Energy’s IPO had generated moderate interest in the grey market, with an expected listing gain of around 3-4%. However, the actual market debut was below expectations, showing a muted response despite a relatively small premium. In the lead-up to the listing, the stock was commanding a grey market premium of Rs 10-12, which indicated some optimism. The actual debut, however, fell short of the anticipated gains.

Ather Energy raised Rs 2,980 crore through its initial public offering (IPO), with a fixed price band between Rs 304 and Rs 321 per share. The three-day bidding period, from April 28 to April 30, saw the issue being subscribed only 1.43 times overall. Interestingly, the portion allocated to Qualified Institutional Buyers (QIBs) was subscribed 1.70 times, while the Non-Institutional Investors (NIIs) category was only subscribed 66%, and the retail portion was booked 1.78 times. The strong demand from retail investors and employees, where the allocation was booked 5.43 times, was a silver lining for the IPO.

Ather Energy, founded in 2013 and headquartered in Bengaluru, has positioned itself as a leading electric vehicle player in India. The company designs, develops, and assembles electric scooters, along with providing charging infrastructure and battery packs. Despite the relatively subdued market debut, Ather Energy is considered a key player in the growing electric vehicle sector, which is gaining momentum in India. The company is known for its innovation and has made strides in developing products with a strong technological focus.

The muted listing could be a sign that investors are cautious about Ather Energy’s growth prospects in the highly competitive electric two-wheeler market. With the government’s strong push for electric mobility and the increasing demand for sustainable transportation options, Ather’s long-term success hinges on how well it can scale its production and meet the evolving consumer needs. The company is also facing competition from other established players and new entrants, making its path to dominance more challenging.

In conclusion, Ather Energy’s market debut, although showing a slight premium, was not as exciting as expected. With the electric vehicle industry poised for significant growth in the coming years, it remains to be seen whether Ather can ride the wave of innovation and lead the charge in the Indian electric two-wheeler market. Investors will be watching closely as the company navigates the post-listing phase and strives for continued growth.

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Source – Business Today