Ather Energy shares slip 6% after muted listing; here's what analysts say

Shares of newly-listed Ather Energy tanked 5.76 per cent to close at Rs 302.50 following their tepid listing on bourses. The electric two-wheeler player got listed at Rs 328 on NSE, a premium of 2.18 per cent over its issue price of Rs 321 (upper price band). The stock started the trade at Rs 326.05 on BSE, up 1.57 per cent from the issue price.

Ather’s Rs 2,981-crore initial share sale was subscribed 1.43 times on its final day, driven by strong interest from qualified institutional buyers (1.70x) and retail investors (1.78x). Non-institutional investors received 66 per cent subscription. The offer comprised a fresh issue of Rs 2,626 crore and an offer-for-sale (OFS) worth Rs 354.8 crore by existing shareholders. The company had earlier raised Rs 1,340 crore from anchor investors.

The IPO was priced at Rs 304–321 per share, valuing the company at Rs 11,956 crore at the upper band. Aether is the first mainboard IPO of the financial year 2025-26 (FY26) and the second electric EV maker to go public, after Ola Electric Mobility Ltd.

Pricey when compared to Ola Electric?

Prashanth Tapse, Senior VP (Research) at Mehta Equities, mentioned that the EV firm’s flat listing was justified as the issue was aggressively priced as against its peer Ola Electric.

“We continue to believe the electric two-wheeler segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concerns with new investors. Given these facts and risks, we recommend a ‘HOLD’ only to risk-taking investors, who are comfortable with short- to medium-term volatility, while conservative investors may still prefer a wait-and-watch, allowing the stock to settle with some reasonable valuation post-listing,” he stated.

Investors should be aware of volatility and risk in short- to medium-term investing, Tapse added.

Gaurav Garg of Lemonn Markets Desk said, “The IPO saw a lukewarm response. The stock’s weak listing and subsequent dip reflect cautious investor sentiment around its steep valuation. However, continued downward pressure could help realign its valuation, potentially making it more attractive to value-conscious investors.”

Bengaluru-based Ather is a pure-play electric two-wheeler company engaged in the design, development, assembly of electric scooters, battery packs, charging infra, and supporting software systems.