Ather Energy shares close 8.3% below listing price on debut day

Ather Energy saw a lacklustre response to its public listing after it debuted at a nearly 2.2% premium at Rs 328 per share on Tuesday.

The HeroMoto Corp-backed company closed down 8.3% at Rs 300.75 apiece, nearer to the lower price band of Rs 304 per share.

Ather Energy, the second electric vehicle (EV) maker to list after Ola Electric last year, had seen relatively tepid demand for its shares in the grey market before Tuesday's listing. The stock was trading at a premium of Rs 7 as of early morning today.

The grey market is an unofficial market where traders buy and sell shares or IPO applications of companies at a premium or discount before the issues are officially launched on public markets.

Ather’s IPO, constituting a fresh issue of Rs 2,626 crore and an offer for sale of up to 1.1 crore shares, was subscribed 1.43X, with the institutional portion seeing a surge during the third and final day of pre-IPO subscription.

The EV maker had trimmed its IPO size to Rs 2,626 crore from its previous target of Rs 3,100 crore amidst broader market conditions.

The company, which has around a 14.3% market share in the electric two-wheeler segment(as of April 2025), competes with legacy players such as Bajaj Auto and TVS Motor, as well as Ola Electric, among others.

In a pre-IPO event on Saturday, co-founder and CEO Tarun Mehta said the company will bank on improving volumes, transitioning to LFP batteries, and a lower-cost EL Platform for its vehicles to improve margins and attain profitability.

Meanwhile, Ola Electric had seen its shares surge about 20% on its debut, boosting the company’s valuation to about $4.8 billion. However, profitability concerns and regulatory troubles have wiped off its valuations since, reiterating growing investor focus on profitability.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)