Ather Energy Ends First Trading Session 6% Below IPO Price

SUMMARY

Ather Energy ended its first trading session 7.22% below its listing price at INR 302.50 on the BSE

The shares touched an intraday low of INR 300, a decline of nearly 8% from the listing price

The company ended its first trading session with a valuation of INR 11,266.90 Cr ($1.33 Bn), down 6% from its IPO valuation of INR 11,956 Cr ($1.42 Bn)

After a muted IPO and listing, EV major Ather Energy ended its first trading session 7.22% below its listing price at INR 302.50 on the BSE. Compared to its IPO price of INR 321, the company’s shares crashed 5.76%.

Earlier today, the shares of the EV company made a muted debut. The stock got listed at INR 326.05 on the BSE, a premium of 1.57% to the issue price.

The shares touched an intraday low of INR 300, a decline of nearly 8% from the listing price, and an intraday high of INR 332.90, up 2.1% from the listing price, today.

Nearly 17.8 Lakh shares of Ather traded hands today.

While the company’s IPO valuation was INR 11,956 Cr ($1.42 Bn), it ended the first trading session with a valuation of INR 11,266.90 Cr ($1.33 Bn).

The IPO saw a subdued interest, closing with an oversubscription of 1.43X on April 30. It received bids for 7.65 Cr shares as against 5.34 Cr shares on offer. While the portion reserved for retail investors and qualified institutional buyers was oversubscribed, that for non-institutional investors saw only 66% subscription.

The company got SEBI’s nod for the IPO in December last year. Ather cofounders Tarun Mehta and Swapnil Jain raked in 15.2X returns each by selling 9.8 Lakh shares via the OFS. Meanwhile, IITM Incubation Cell offloaded 31,050 shares for about INR 1 Cr.

With the public listing, Ather has become the second EV company to debut on the stock exchanges. Founded in 2013 by Mehta and Jain as an IIT Madras incubated startup, Ather has emerged as one of India’s leading EV scooter manufacturers in India.

“What started as an engineering project is now a pan-India brand. We’ve built the engine: a product engine, a service engine, a manufacturing engine, and a supply chain that delivers consistently. Now it’s time to feed that engine and scale. As we become a public company, to the lakhs of shareholders who’ve bought into this vision, thank you,” Mehta said in a post on X following the company’s listing.

Ather sold over 1.25 Lakh escooters in 2024, trailing Ola Electric, Bajaj Auto, and TVS Motor in the burgeoning Indian EV space.

In August last year, Ather’s competitor Ola Electric also saw a flat listing at INR 76. However, the company’s shares touched upper circuit in their first trading session.