Shares of Ather Energy made its Dalal Street debut on Tuesday, May 6, as the stock was listed at a premium of 2.18% at ₹328 on NSE. Similarly, the stock was listed at a premium of 1.6% at ₹326.05 on BSE, as against the issue price of ₹321.Ahead of its debut, Ather Energy shares were also commanding a 2% premium in the grey market. Most investors track the grey market premium (GMP) to get an idea of the listing price.
Prashanth Tapse of Mehta Equities said the flat listing seems to be justified, as the issue was aggressively priced, especially when benchmarked against peer OLA Electric, whose post-listing performance has been underwhelming.
According to Tapse, the final day subscription surge — particularly from Qualified Institutional Buyers (QIBs) — suggests a last-minute effort to support the issue amid fears of under-subscription. This points to a lack of broad-based enthusiasm and raises concerns about the IPO’s inherent demand quality, he added.
Ather CEO expects FY26 volume growth to be better
Tarun Mehta of Ather Energy told CNBC-TV18 that he is bullish on near-term growth, margin, volume and market share should trend higher in FY26. Mehta expects FY26 volume growth to be better than what the company had seen in the first nine months of FY25.Mehta also said that Ather Energy’s EBITDA breakeven and cashflow positive timeline will be close to each other.
All about Ather Energy IPO
The ₹2,981 crore IPO drew a relatively subdued response across categories. Retail investors subscribed 1.78 times their allocated portion, followed by qualified institutional buyers at 1.70 times. The non-institutional investors’ portion lagged at 66% subscription, while the employee quota saw robust demand at 5.43 times.The public offer was open for subscription from April 28 to April 30. Ather sold its shares in the range of ₹304-321 apiece.
The Tiger Global-backed company had reduced the size of its IPO, its prospectus showed.The IPO included fresh equity sale of 8.18 crore shares worth ₹2,626 crore and an offer for sale (OFS) of 1.1 crore shares. The total issue size comes to about ₹2,981 crore.Under the OFS, promoters Tarun Sanjay and Swapnil Babanla, along with other corporate shareholders, offloaded part of their stakes.Sources had told CNBC-TV18 that Ather Energy was targeting a post-money valuation of ₹12,800 crore, down from its earlier expectation of ₹14,000 crore.Ather Energy plans to use the IPO proceeds for funding its new factory in the western state of Maharashtra, as well as for research and development, repayment of debt, marketing, and general corporate purposes.Hero MotoCorp is the largest shareholder in Ather with around 40% stake. Hero maintained its stance that it will not sell its shares in the public offer.Ather Energy is an electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems. Its electric two-wheeler portfolio comprises two product lines, the Ather 450 and the Ather Rizta, with seven variants.The Bengaluru-based company reported a narrower loss of ₹578 crore in the nine months ended December, from ₹776 crore a year ago, due to increased sales of its electric family scooter Rizta, which was launched in 2024.Axis Capital, Hsbc Securities & Capital Markets, Jm Financial, Nomura Financial Advisory And Securities (India) are the book running lead managers of the Ather Energy IPO, while Link Intime India is the registrar.Ather Energy is the first major mainboard IPO of FY26. The compay will become the second pure-play Indian electric vehicle manufacturer to go public, following Ola Electric’s IPO in 2024.
