Ather Energy share price falls 6% after muted listing. Should you buy, sell or hold the EV stock?

Ather Energy share price declined 6% after making a muted debut in the Indian stock market today. Ather Energy IPO listing date was today, 6 May 2025, and the equity shares of the electric vehicle (EV) company were listed on BSE and NSE.

Ather Energy share price was listed at a little premium to its issue price. On BSE, Ather Energy share price today opened at ₹326.05 apiece, up 1.57% than the issue price of ₹321. The EV stock fell 5.99% from its listing price to an intraday low of ₹306.50 on the BSE.

On NSE, Ather Energy began trading at ₹328 per share, a premium of 2.18% to the IPO price.

Ather Energy IPO listing price was in line with the Street estimates of a lukewarm debut. Analysts and Ather Energy IPO GMP today, or grey market premium today, ahead of the listing, indicated a muted stock market debut.

Analysts expect limited upside potential for Ather Energy share price and suggest only high-risk taking taking investors to hold the stock. Here’s what to expect from Ather Energy shares:

Should you buy, sell or hold Ather Energy shares?

Ather Energy operates in an intensely competitive electric two-wheeler market, facing pressure from legacy giants like Hero MotoCorp, Bajaj Auto, TVS Motor Company, and Honda and new-age players like Ola Electric.

“While Ather Energy has built a strong brand and holds an 11.5% market share, scaling up further will be challenging as these established players bring in brand trust, wider distribution, and stronger financial backing. Competing with such seasoned rivals for a relatively new company like Ather will require sustained innovation, deeper financial resources, and a clear path to profitability — areas where visibility is still limited,” said Gaurav Goel, Founder & Director at Fynocrat Technologies.

While Ather’s early-mover advantage in electric mobility is positive, investors seem cautious due to its ongoing losses, high competition, and premium valuations. With market share gains slowing and profitability still a few years away, sentiment remains subdued, he added.

“We expect limited near-term upside unless the company can quickly improve its financials and scale up production after listing,” Goel said.

According to Avinash Gorakshakar, Head of Research at Profitmart Securities, Ather Energy share price listing was on expected lines, as the IPO price was very aggressive.

“Going ahead, Ather Energy share price would depend on what data the company delivers in terms of volume growth and visibility of profits coming in. Narratives will initially drive the stock, but fundamentals will need to support it going forward,” Gorakshakar said.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, believes that the flat listing of Ather Energy shares today was justified, as the issue was aggressively priced, especially when benchmarked against peer Ola Electric Mobility.

“We continue to believe the electric two-wheeler (EV 2W) segment remains highly competitive and capital-intensive, with most players, including market leaders, struggling to achieve sustainable profitability and raising concern 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,” Tapse said.

Industry being in the High Growth – High Competition and High Cash Burning segment, we will see high volatility both in business as well as in the price action, hence investors should be aware of volatility & risk in short to medium term investing, he added. 

At 12:40 PM, Ather Energy shares were trading 5.72% lower than its listing price at ₹307.40 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.