Ather Energy Share Price Sees Modest Listing; Slips Post Debut

Market Performance

Ather Energy's share price made a muted debut on the Indian stock exchanges on May 6, 2025. It opened just 2% higher than its issue price of ₹321 per share.

• NSE Listing Price: ₹328 (↑ 2.18%)
• BSE Listing Price: ₹326.05 (↑ 1.57%)

However, the early gains didn’t last long. By 10:20 am, Ather Energy's share price slipped below the listing price on both exchanges:

• NSE: ₹323.65 (↓ 1.33% from listing price)
• BSE: ₹323.45 (↓ 0.8% from listing price)

This tepid performance came despite earlier expectations based on the grey market, hinting at a more substantial premium of around 4.36% (GMP of ₹14, implying a price of ₹335).

Ather Energy IPO Overview

The initial public offering (IPO) of Ather Energy, India’s first mainboard IPO of FY26, was open for subscription between April 28 and April 30.

Subscription Details:

• Overall Subscription: 1.50 times
• Retail Investors: 1.89 times
• Qualified Institutional Buyers (QIBs): 1.76 times
• Non-Institutional Investors (NIIs): 0.69 times
• Employee Quota: 5.43 times

Fundraising:

• Total Funds Raised: ₹2,981.06 crore
  • Fresh Issue: ₹2,626.30 crore
  • Offer for Sale (OFS): ₹354.76 crore

Fund Utilization Plans:

• Establishment of a new E2W factory in Maharashtra
• Repayment of existing corporate borrowings
• Investment in R&D and marketing
• General corporate purposes

About Ather Energy

Founded in 2013 by Tarun Sanjay Mehta and Swapnil Babanlal Jain, Ather Energy is a homegrown electric vehicle (EV) manufacturer. It specializes in electric two-wheelers (E2Ws) and has built a strong ecosystem, including charging stations, innovative accessories, and proprietary software.

• FY24 Market Share: 11.5%
• Industry Rank: 3rd largest E2W player by volume

Despite its popularity and market share, the company has struggled with profitability since its inception.

Financial Overview

Revenue

• FY24: ₹1,753.8 crore
• FY23: ₹1,780.9 crore
• Indicates stagnant growth year-on-year

Net Loss (Before Taxes)

• FY24: ₹1,059.7 crore
• FY23: ₹864.5 crore
• FY22: ₹344.1 crore
• Losses have widened significantly over the years

Summary

Ather Energy's share price debuted with a modest premium but soon slipped below its listing price, reflecting investor caution. While the IPO managed decent traction among retail and institutional investors, its persistent losses and flat revenue raise questions about its future financial performance. Still, Ather remains a key player in the EV segment, with a strong brand and expanding infrastructure.