Ather Energy IPO Listing on BSE and NSE With Modest Premium

Ather Energy made its stock market debut on May 6, 2025, with its shares listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The electric two-wheeler manufacturer's IPO had closed with lukewarm interest, and market analysts had already predicted a cautious start. As expected, Ather's shares opened with a modest gain, reflecting a subdued grey market premium (GMP) and limited enthusiasm from non-institutional investors.

With a share price of INR 321, the IPO had a grey market premium of just INR 14 on the eve of listing, which translates to a possible 4.36% gain. But while investors were betting on the big up move, their extreme enthusiasm was being weighed down by nagging concerns over the EV sector's profitability.

Subscription Data Paints a Mixed Picture

The IPO, which took place from April 28 to April 30, was not in great demand, showing a mere 1.43 times overall subscription by the time the offering was completed on May 2. Qualified Institutional Buyers (QIBs) expressed some interest in the company, but only at the very end of the offering window. Call it a timid thumbs up from those who generally lead the charge. But at least it made for a slightly more palatable offering than it would have been otherwise.

Observers in the market have taken to believing that Ather's pricing strategy is rather aggressive. This belief is particularly strong when one makes comparisons to fellows in the sector such as Ola Electric. The latter's own post-IPO performance has left something to be desired, to put it mildly. Ather, of course, is a brand that many people respect, especially in the space of electric vehicles. Analysts have taken to saying that the lack of enthusiasm for the Ather IPO suggests that the investing public wants to see clearer paths to profitability before it showers electric vehicle manufacturers with the kind of sky-high valuations that our parents used to call rich.

Short-Term Outlook: Volatility and Risk

Experts are cautious about how Ather Energy's stock will perform in the near term. They see the electric two-wheeler market as still working through scaling issues and margin pressures and expect the sector to enjoy substantial volatility. In this context, they see Ather's stock as likely to be flat to just nudging up or down within a fairly narrow range unless we get some exciting news from Ather on that operational front or on how ramped-up production is going.

Those who can handle risk may wish to retain their current investments and wait for the long-term to see if the situation improves. However, investors who prefer a more conservative route are better off biding their time and watching how this situation plays out.

The IPO worth INR 2,981.06 crore consisted of a fresh public offering of shares for INR 2,626.30 crore and an offer for sale (OFS) of about INR 354.76 crore by some existing shareholders. Now, the company faces the challenge of not just meeting investor expectations but also making a go of it in the ever more competitive and rapidly changing EV space in India.